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NATIONAL  CANNERS 
ASSOCIATION 


SPECIAL  BULLETIN  NO.  3 

STANDARD  CLASSIFICATION  OF  ACCOUNTS 
CLASSIFICATION  A 


WASHINGTON,  D.  C. 

DECEMBER,  1917 


GIFT 


THE  LIBRARY 

OF 

THE  UNIVERSITY 

OF  CALIFORNIA 

HENRY  RAND  HATFIELD 
MEMORIAL  COLLECTION 


PRESENTED  BY 

FRIENDS  IN  THE  ACCOUNTING 

PROFESSION 


Digitized  by  the  Internet  Archive 

in  2007  with  funding  from 

Microsoft  Corporation 


http://www.archive.org/details/classificationofOOnatirich 


Classification  of  Accounts 


For  Canners  Who  Manufacture  Two  or  More 

Lines  of  Canned  Goods  or  Operate 

Two  or  More  Factories 


CLASSIFICATION  A 
PROOF  COPY 


Adopted  and  approved  December  28,  1917,  by  the  National 
Canners  Association,  Washington,  D.  C. 


Prepared  by  Albert  T.  Bacon,  C.  P.  A.,  Chicago,  and  Robert  E.  Belt,  C.  P.  A., 
Cleveland,  formerly  Chief  Accountant  of  the  Federal  Trade  Commis- 
sion, in  collaboration  with  the  Cost  Accounting  Committee 
of  the  National  Canners  Association 


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INTRODUCTORY 

The  attention  of  the  manufacturing  world,  through  the  Federal 
Trade  Commission,  has  been  called  to  the  necessity  of  obtaining 
uniform  methods  of  cost  finding  in  the  different  industries,  so  that 
the  members  of  each  industry  may  be  upon  a  fair  competitive  basis. 
Your  committee,  in  undertaking  its  task,  considered  the  plan  of 
devising  a  uniform  system  of  accounts,  the  basic  features  of  which 
would  be  the  same  for  all  branches  of  the  canning  business,  and 
one  which  could  be  elaborated  to  meet  the  needs  of  any  division  of 
the  industry,  or  of  any  individual  canning  several  different  prod- 
ucts; a  system  which  would  as  a  first  and  primary  requirement  be 
simple  and  yet  complete  and  adaptable  to  the  needs  of  each  factory 
and  each  company. 

It  is  not  intended  that  factories  adopting  this  Standard  Classifi- 
cation shall  conform  to  it  in  all  respects.  Accounts  may  be  further 
subdivided  to  suit  the  needs  of  the  individual  plant,  or  expense  and 
income  accounts  under  the  same  groups  or  divisional  headings 
may  be  combined.  The  account  numbers  are  not  continuous,  and 
account  names  may  be  added  or  dropped  at  any  time  without  dis- 
turbing the  number  arrangement. 

Accounts  prepared  under  Classification  B  (for  one  line)  will 
give  the  same  results  for  any  one  commodity  as  Accounts  for  the 
same  commodity  prepared  under  Classification  A  (for  two  or  more 
lines).  That  is  to  say,  two  factories  packing  corn,  one  using  Clas- 
sification A  and  the  other  using  Classification  B,  may  compare  corn 
costs  critically,  confident  that  they  are  comparing  like  figures. 

This  Classification  conforms  to  the  requirements  imposed  upon 
Corporations  and  Individuals  reporting  for  the  Federal  Income  Tax. 


STRUCTURE  OF  THE  ACCOUNTS 

The  guiding  principle  in  this — as  in  any  Classification  of  accounts 
— is  to  distinguish  clearly  between  different  general  classes  of 
accounts,  and  also  to  distinguish  between  the  several  subheadings 
under  each  general  class.  A  brief  summary  of  these  general  divi- 
sions is  therefore  in  order. 


M513334 


Investment      Investment    Accounts    represent    Land,    Buildings, 
Accounts  Machinery  and  other  property  and  equipment  of  a 

relatively  permanent  character. 

The    original    investment    in  property  of  this  class  is  a  capital 
investment. 

Depreciation  These  are  closely  related  to  the  Investment  Ac- 
Reserve  counts.  Instead  of  crediting  depreciation  directly  to 
Accounts  Investment  Accounts,  and  thus  losing  sight  of  the 
original  investment,  depreciation  is  credited  to  a 
Depreciation  Reserve  Account  (a  separate  account  for  each  class 
of  accounts  to  be  depreciated)  and  charged  to  a  depreciation  ex- 
pense account. 

The  Investment  Account  less  the  corresponding  reserve  repre- 
sents the  net  book  value  of  the  property  investment. 


Capital  These  accounts  represent  the  owner's  net  investment 

Accounts         in  the  property.    If  an  incorporated  company,  own- 
ership is  expressed  as : 

Capital  Stock. 
Surplus  (or  Deficit). 

If  a  partnership,  ownership  is  expressed  thus : 

John  Doe — Capital  Account. 
Richard  Roe — Capital  Account. 

If  the  business  is  owned  by  a  single  proprietor,  the  owner's  net 
investment  will  read: 

John  Doe — Capital  Account. 

Factory  Next  as  to  the  business  operations,  we  consider  that 

Overhead         class  of  expenses  which  are  fairly  constant  without 
Expense  regard  to  the  volume  of  manufacture,  commonly 

called  Indirect  or  Factory  Overhead  Expense. 

This  includes,  as  to  Factory,  Factory  Superintendent,  Power, 
Repairs,  Insurance,  Taxes,  etc.,  which  are  expenses  of  manufacture 
but  do  not,  generally  speaking,  go  into  the  product  itself. 

They  are  carried  thus  until  the  end  of  the  fiscal  year.  Then, 
when  the  exact  total  of  this  burden  is  known  and  when  the  exact 
output  of  the  factory  which  is  to  carry  the  burden  is  known,  this 
total  is  distributed  to  Commodity  accounts,  pro  rata. 


Selling  This   group   is   not   unlike   Factory    Overhead   Ex- 

Expense  penses,  except  that  these  expenses  relate  to  the  sell- 

ing of  the  finished  goods.  This  is  distributed  to 
Commodity  Accounts  pro  rata  at  the  year's  end. 

General  This  represents  a  class   of   expenses   which   relates 

Overhead         neither  to  the  manufacture  nor  sale  of  goods  but  is 
Expense  so  intimately  concerned  with  both  as  to  make  an 

apportioning  mere  guesswork.  These  items  are  dis- 
tributed among  the  commodities  at  the  year's  end  on  as  equitable 
a  basis  as  can  be  found. 

Other  The  diverse  nature  of  these  accounts  forbids  their 

Expense  inclusion  in  any  of  the  foregoing,  and  therefore  they 

are  grouped  here. 

Stock  Purchases  of  materials  and  supplies  to  be  consumed 

Accounts  during  the  season  are  charged  to  appropriate  stock 
accounts.  Shortage  in  supplies  can  be  more  readily 
traced  if  thus  kept  separate.  The  amount  used  is  determined 
by  inventory  at  close  of  year,  and  if  the  amount  used,  as  thus 
ascertained,  is  materially  different  from  the  amount  used,  based 
on  the  factory  reports,  inquiry  should  be  made  to  discover  the 
causes. 

Miscellaneous  The  names  of  the  accounts  under  this  head  sufn- 
Income  ciently  indicate  their  nature,  and  therefore  no  ex- 

tended comment  is  offered. 

COMMODITY   ACCOUNTS 

Direct  We  now  come  to  the  DIRECT  FACTORY  COST, 

Factory  which,   unlike    the   indirect   or   overhead   expenses, 

Cost  vary  directly  with  the  quantities  produced.     In  any 

discussion  of  costs  these  items  of  Green  Produce, 
Labor,  Cans,  Boxes,  Labels,  etc.,  are  always  mentioned  first. 
They  are  therefore  passed  over  in  this  introductory  memo- 
randum. Full  particulars  of  these,  as  of  all  other  accounts  follow 
in  the  Classification. 

Factory  These  consist — first,  of  such  items  of  factory  over- 

Overhead         head  expense  as  can  be  definitely  allocated  to  one 
Expense  commodity  at  the  time  the  expense  is  incurred,  and 

following  this,  at  the  year's  end  the  proportion  of 
FACTORY  OVERHEAD  EXPENSE  of  the  entire  factory 
which  this  one  commodity  should  bear. 

Selling  This   group   is    not   unlike    Factory   Overhead   Ex- 

Expense  penses,   except   that   these   expenses   relate   to   the 

selling  of  the  finished  goods.  This  is  distributed  as 
(Commodity)  SELLING  EXPENSE  at  the  year's  end. 


All  expenses  must  ultimately  be  charged  to  some  Commodity 
Account.  The  chief  reason  why  all  are  not  thus  charged  at  once 
is  that  some  expense  or  burden  cannot  be  charged  to  the  com- 
modities until  the  total  expense  is  known,  and  until  the  total 
production  and  sales  are  known. 

Income  Income  is  as  distinct  from  Costs  or  Expenses  as  day- 

Accounts  light  from  dark  .  True,  there  may  be  a  fringe  of  twi- 
light where  an  incidental  income  (such  as  sales  of 
raw  materials  and  supplies)  affects  Expense,  or 
where  an  expense  (such  as  freight  on  returned  product)  dimin- 
ishes income.  But  these  minor  and  exceptional  items  rather 
emphasize  the  fact  that  income  is  in  a  class  by  itself.' 

The  old  time  method  of  charging  goods  purchased  to  Mer- 
chandise and  crediting  goods  sold  to  the  same  account,  is  the  best 
method  yet  devised  for  effectually  concealing  business  operations. 
It  tells  you  nothing — it  gets  you  nowhere.  The  single  entry  method 
of  taking  inventory  of  everything  at  the  end  of  each  year  and  com- 
paring the  inventories,  without  carrying  any  ledger  accounts  except 
with  Cash  and  with  Customers,  will  supply  as  much  information 
as  this  faulty  and  all  too  common  method  of  telescoping  merchan- 
dise purchases  and  sales. 

Sales  represent  income  directly  applicable  to  the  commodity  and 
the  Commodity  Sales  Account  receives  credit  as  and  when  the  buyer 
is  charged. 


Farm  If  the  canner  grows  his  own  product,  or  any  part  of  it, 

Accounts  this  is  a  separate  and  distinct  activity — the  result  of 

which  is  brought  into  the  Factory  Accounts  at  the 
close  of  the  year — based  on  his  success  at  growing  the  crops.  The 
loss,  if  any,  indicated  by  the  excess  of  all  Farm  Expense  over  all 
Farm  Income  represents  the  hazard  attendant  upon  growing  his  own 
produce. 


The  structure  and  arrangement  of  the  accounts  in  4;his  Classi- 
fication has  been  influenced  to  some  extent  by  suggestions  of  the 
Federal  Trade  Commission  as  to  governmental  requirements. 


INDEX 

THE  CANNING  COMPANY 

CLASSIFICATION  OF  ACCOUNTS 
Effective ,  191... 

Investment  Accounts 

1.  Factory  Site. 

2.  General  Buildings. 

3.  General  Machinery. 

4.  Corn  Buildings. 

5.  Corn  Machinery. 

6.  Pea  Buildings. 

7.  Pea  Machinery. 

8.  Tomato  Buildings.  ' 

9.  Tomato  Machinery. 

10.  Buildings. 

11.  Machinery. 

20.     Office  Furniture  and  Fixtures. 
25.     Automobiles. 

Depreciation  Reserve  Accounts 

32.  General  Buildings  Depreciation  Reserve. 

33.  General  Machinery  Depreciation  Reserve. 

37.  Corn  Buildings  Depreciation  Reserve. 

38.  Corn  Machinery  Depreciation  Reserve. 

40.  Pea  Buildings  Depreciation  Reserve. 

41.  Pea  Machinery  Depreciation  Reserve. 

43.  Tomato  Buildings  Depreciation  Reserve. 

44.  Tomato  Machinery  Depreciation  Reserve. 

45.    Buildings  Depreciation  Reserve. 

46.    Machinery  Depreciation  Reserve. 

51.     Office  Furniture  and  Fixtures  Depreciation  Reserve. 
Open  ledger  accounts  with  numbered  accounts  only. 


INDEX 


Capital  Accounts 

60.  Capital  Stock. 

61.  Surplus  (or  Deficit)  Account. 

or 

60.  John  Doe,  Capital  Account. 

61.  Richard  Roe,  Capital  Account. 

Direct  Factory  Cost 

Direct  Factory  Costs  are  next  in  order,  but  to  allow  for  ex- 
pansion, these,  together  with  the  Commodity  Income  Accounts, 
follow  at  the  end  of  the  Classification. 

^Factory  Overhead  Expense 

70.  Factory  Superintendent. 

71.  '  Power  Plant  Expense. 

72.  Building  and  Machinery  Repairs. 

73.  Insurance. 

74.  Taxes. 

75.  Factory  Expense. 

76.  Factory  Rent. 

77.  Interest  on  Short  Term  Notes. 

88.  Bonus — Factory  Superintendent. 

"Selling  Expense 

80.     Selling  Expense. 

:: General     Overhead  Expense 

89.  Bonus — Officers  and  Managers. 

90.  Warehousing  Expense. 

91.  Salaries — Officers  and  Managers. 

92.  Office  Salaries  and  Expense.  ' 

93.  General  Expense. 

94.  Bad  Debts. 

95.  Discount  Allowed. 

Income  Accounts 

Income  Accounts  are  next  in  order,  but  to  allow  for  expansion 
they  follow  at  the  end  of  this  Classification. 


These  represent  expenses  of  the  factory  as  a  whole,  which  are  ulti- 
mately distributed  to  similar  headings  under  specific  commodities. 


INDEX 


Stock  Accounts — Supplies  and  Finished  Goods 

100.  No.  2  Cans. 

101.  No,  2]/2  Cans. 

102.  No.  3  Cans. 
Cans. 


110.  No.  2  Boxes. 

111.  No.  iy2  Boxes. 

112.  No.  3  Boxes. 
Boxes. 

120.  Labels. 

121.  Sugar  and  Salt. 

140.  Canned  Corn. 

141.  Canned  Peas. 

142.  Canned  Tomatoes. 


Miscellaneous  Accounts 

160.  Discount  Received. 

161.  Interest  Received. 

162.  Ensilage. 

163.  Incidental  Income. 

164.  Interest  Reserve.       * 

165.  Profit  and  Loss. 

166.  Accounts  Receivable  Reserve. 

167.  Contingent  Reserve. 

168.  Farm  Profit  and  Loss. 

98.  Excess  Profits  Taxes. 

99.  Interest  on  Long  Term  Notes. 
97.  Income  Taxes. 


INDEX 


COMMODITY  ACCOUNTS 

Direct  Factory  Cost 

200.  Corn — Green. 

201.  Corn — Direct  Labor. 

202.  Corn — Cans  Used. 

203.  Corn — Boxes  Used. 

204.  Corn— Labels. 

205.  Corn — Condiments  LTsed. 

Factory  Overhead  Expense 

207.  Corn — Depreciation  Expense. 
209.     Corn — Factory  Expense. 

211.  Corn — Interest  on  Short  Term  Notes. 

Selling  Expense 

212.  Corn — Brokerage  and  Commission. 

213.  Corn — Selling  Expense. 

214.  Corn — Warehousing  Expense. 

216.  Corn — Sales  Allowances. 

General  Overhead  Expense 

215.  Corn — General  Expense. 

Other  Expense 

217.  Corn — Contingent  Expense. 

208.  Corn — Income  Taxes. 

218.  Corn — Interest  on  Long  Term  Notes. 

219.  Corn — Interest  (a/c  Investment). 

Sales  Accounts 

220.  Corn — Sales. 

225.     Corn — Sales  Freight. 


Commodity  Accounts  for  all  commodities  are  arranged  on  the 
same  general  plan  as  above. 

The  index  for  all  Commodity  Accounts  (Corn  included)  appears 
on  the  next  page. 

10 


COMMODITY  ACCOUNTS 

Corn     Peas  Tom. 

Direct  Factory  Cost 

Green  Produce  200        300  400 

Direct  Labor 201         301  401 

Cans  Used 202        302  402 

Boxes  Used    203        303  403 

Labels    204        304  404 

Condiments  Used 205        305  405 

Factory  Overhead  Expense 

Depreciation  Expense 207         307  407 

Factory  Expense  209         309  409 

Interest  on  Short  Term  Notes  211         311  411 


Selling  Expense 

Brokerage  and  Commission..   212         312  412 

Selling  Expense 213        313  413 

Warehousing  Expense 214        314  414 

Sales  Allowances 216        316  416 

General  Overhead  Expense 

General  Expense  215        315  415 

Other  Expense 

Contingent  Expense 217        317  417 

Income  Taxes 208         308  408 

Interest  on  Long  Term  Notes.   218         318  418 

Interest  (a/c  Investment)  .  .  .   219        319  419 


INDEX 


500 

600 

501 

601 

502 

602 

503 

603 

504 

604 

505 

605 

507 

607 

509 

609 

511 

611 

512 

612 

513 

613 

514 

614 

516 

616 

515        615 


508 

608 

518 

618 

519 

619 

Sales 

Sales  Freight 225 


Sales  Accounts 

220    320   420    520    620 


325 


425    525    625 


Insert  names  of  commodities  packed  at  head  of  each  column. 

11 


INDEX 


FARM  ACCOUNTS 

900.  Farm  Labor. 

901.  Horses  and  Mules. 

902.  Farm  Equipment. 

903.  Fertilizers. 

904.  Seed  Corn. 

905.  Pea  Seed. 

906.  Farm  Rent. 

907.  Farm  Depreciation  Expense. 

908.  Miscellaneous  Seed. 

909.  Cattle  Account. 

910.  General  Farm  Expense. 

911.  Farm  Maintenance. 

912.  Farm  Interest  (a/c  Investment). 

913.  Farm  Interest  Paid. 
920.  Farm  Income. 

925.  Farm  Lands. 

930.  Farm  Buildings. 

935.  Farm  Buildings  Depreciation  Reserve. 

168.  Farm  Profit  and  Loss. 


12 


INVESTMENT   ACCOUNTS 

1  FACTORY  SITE 

Charge  original  cost,  also  filling,  tiling,  roadways 
and  other  improvements. 

2  GENERAL  BUILDINGS 

Includes  switch  track. 

3  GENERAL  MACHINERY 

4  CORN  BUILDINGS 

5  CORN  MACHINERY 

6  PEA  BUILDINGS 

7  PEA  MACHINERY 

8  TOMATO  BUILDINGS 

9  TOMATO  MACHINERY 

Charge  to  the  foregoing  accounts  cost  of  factory 
buildings  and  factory  machinery  and  equipment 
and  actual  new  additions,  together  with  all  ex- 
penses of  installation. 
Charge  electric,  steam  and  water  lines. 

Note. — Charge  to  these  accounts  machinery  and 
equipment  of  a  permanent  character  (usually  such 
as  is  screwed  or  bolted  or  strapped  to  or  otherwise 
permanently  installed  in  the  building)  including 
the  original  investment  in  machine  tools,  parts,  and 
belts  and  pulleys  necessary  to  its  complete  installa- 
tion for  use. 

Repairs,  replacements  and  renewals  of  belts  and 
accessories  or  of  the  machines  themselves  are 
charged  to  the  appropriate  machinery  repair  ac- 
count. 

20     OFFICE  FURNITURE  AND  FIXTURES 

DR.     Office   Equipment — including   desks,   safe,   adding 
machine,  typewriter,  check  protector,  etc. 
Similar  equipment  in  factory. 
Time  recording  system,  exclusive  of  wiring. 
Charge  new  additional  equipment  only. 

25     AUTOMOBILES 

DR.     Automobiles  and  all  expenses  of  maintenance  and 
operation,  including  insurance. 

"Horses,  mules  and  wagons,  factory"  may  be  sub- 
stituted or  added  if  these  are  used  only  for  fac- 
tory purposes. 

13 


DEPRECIATION  RESERVE  ACCOUNTS 

A  separate  (Credit)  Reserve  Account  is  opened 
for  reserves  against  each  property  to  be  depre- 
ciated, such  as: 

32  GENERAL  BUILDINGS  DEPRECIATION  RESERVE 

33  GENERAL  MACHINERY  DEPRECIATION 

RESERVE 


37  CORN  BUILDINGS  DEPRECIATION  RESERVE 

38  CORN  MACHINERY  DEPRECIATION  RESERVE 

40  PEA  BUILDINGS  DEPRECIATION  RESERVE 

41  PEA  MACHINERY  DEPRECIATION  RESERVE 

43  TOMATO  BUILDINGS  DEPRECIATION  RESERVE 

44  TOMATO  MACHINERY  DEPRECIATION  RESERVE 

51     OFFICE  FURNITURE  AND  FIXTURES  DEPRECIA- 
TION RESERVE 

CAPITAL  ACCOUNTS 

60  CAPITAL  STOCK 

61  SURPLUS 

or 

60  JOHN  DOE—CAPITAL  ACCOUNT 

61  RICHARD  ROE— CAPITAL  ACCOUNT 


14 


FACTORY  OVERHEAD  EXPENSE 

70  FACTORY  SUPERINTENDENT 

DR.     Salary  and  expenses  of  Superintendent. 

71  POWER  PLANT  EXPENSE 

DR.     All  expense  of  operating  power  plant,  including 
coal,  freight  and  labor  unloading. 

Wages  of  engineer  and  fireman. 

Electric  lamps. 

Electric  Energy  purchased. 

Waste,  packing,  engine  and  boiler  room  supplies. 

72  BUILDING  AND  MACHINERY  REPAIRS 

DR.     Repairs  and  maintenance  of  general  factory  build- 
ings, grounds,  walks  and  roadways. 

Maintenance  of  switch  track. 

DR.     Repairs  and  renewals  of  general  machinery,  tools 
and  factory  equipment. 

Belting  renewals. 

Note. — Belting  for  original  installation  of  new 
machines  is  charged  to  an  Investment  Account. 

73  INSURANCE 

DR.     Fire,  boiler,  fidelity,  employers  liability. 

Note.- — Charge  Insurance  on  automobile  to  Auto- 
mobiles (25). 

Charge    Insurance    on    Canned    Goods    direct    to 
Warehousing  Expense  (90). 

See  note  regarding  insurance  at  Canners  Exchange 
on  page  38. 

74  TAXES 

DR.     Real  and  Personal  taxes  accrued,  whether  paid  or 
not  paid. 

For  Income  and  Excess  Profits  taxes  see  accounts 
Nos.  97  and  98. 

15 


FACTORY  OVERHEAD  EXPENSE 

75     FACTORY  EXPENSE 

DR.     Wages  of  watchman. 

Wages  of  foreman,  except  during  pack. 
Wages  of  Timekeeper  and  Paymaster. 
Water  taxes.    Gas  and  electric  light  purchased. 
Factory  labor  which  cannot  be  charged  to 
Corn  accounts  201  or  209. 
Pea  accounts  301  or  309. 
Tomato  accounts  401  or  409. 
Royalties  and  rentals  of  leased  machines  used  in 

the  manufacture  of  more  than  one  commodity. 
Miscellaneous  factory  expense  not  chargeable  to 

a  specific  commodity  account. 

Small  tools  and  appliances  for  general  factory  use. 

Following  are  items  of  portable  equipment  which 

are  chargeable   to   this   account,   except  where 

such  expenditures  can  with  reasonable  accuracy 

be  charged  to  a  specified  commodity  expense 

account  : 

Aprons 

Barrels 

Baskets  (wood,  wire,  steel) 
Belt  Tightener 


Block  and  tackle 

Box-making  benches 

Box  nails 

Brooms 

Brushes 

Card  Punch 

Clocks 

Crates  (wood,  wire,  steel) 

Cuspidors 

Disinfectants 

Factory  chairs  and  stools 


Lanterns 

Lacquer 

Lubricating  oil 

Oil  cans  and  other  portable 
containers  for  factory  sup- 
plies 

Paste 

Pipe  threaders 

Potato  forks 

Portable  heaters 

Shovels 

Soap 

Solder 

Smithing  tools 

Scales  (portable) 


Fire  extinguishers  (portable)  Stamps  (rubber) 


First  Aid  supplies 

Flux 

Grindstones  (small) 

Gasoline 

Gloves 

Husking  baskets 

Hose 

Jack  screws 

Kerosene 

Knives 

Ladders 


Stencils 

Stoves 

Toilet  supplies 

Towels 

Taps  and  dies 

Trays  (wood,  wire,  steel) 

Time  and  piece  work  checks 

Trucks 

Uniforms 

Wheelbarrows 

Wrenches 


Credit  inventory  at  end  of  fiscal  year. 
16 


FACTORY  OVERHEAD  EXPENSE 

76  FACTORY  RENT 

DR.     Rent  actually  paid  for  factory  rented  from  others. 

77  INTEREST  ON  SHORT  TERM  NOTES 

DR.     Interest  paid  on  borrowed  money  or  on  negotiable 
paper  maturing  within  one  year  from  its  date. 

(See  also  Account  No.  99.) 

88     BONUS— FACTORY  SUPERINTENDENT 

Charge  extra  compensation  paid  to  Superintendent 
above  stipulated  salary. 


17 


• 
GENERAL  SELLING  EXPENSE 


80     SELLING  EXPENSE 


Charge  selling  expenses  of  a  general  character 
which  are  not  applicable  to  commodity  Selling 
Expense  Accounts,  including 

Salaries  and  expenses  of  salesmen. 

Advertising  Price  lists. 

Cost  of,  samples  and  express  on  same — cartons  and 
parcel  postage. 

Demonstration  and  display. 

Traveling  and  entertainment  in  the  interest  of 
selling  canned  goods. 

All  expenses  of  selling  goods,  except  brokerage. 


95     DISCOUNT  ALLOWED 

DR.     Cash  discount  allowed  on  sales. 


IS 


GENERAL  OVERHEAD  EXPENSE 

89— BONUS  —OFFICERS  AND  MANAGERS 

DR.     Extra  Compensation  paid  to  officers  and  managers. 

90  WAREHOUSING  EXPENSE 

DR.     Insurance  on  Canned  Goods. 

Labelling  and  loading  canned  goods. 

Lacquering  and  relabelling  damaged  goods. 

Heating  and  other  warehouse  expense. 

Storage,  insurance,  lacquering,  relabelling  and  other 
expenses  in  connection  with  consigned  and  re- 
jected goods. 

91  SALARIES— OFFICERS  AND  MANAGERS 

Charge  Salaries,  Officers  and  Managers. 

92  OFFICE  SALARIES  AND  EXPENSE 

DR.     Salaries   of   office   help    other   than   that   which   is 
chargeable  to  the  preceding  account,  No.  91. 

Office  supplies,  stationery,  postage,  telephone  and 
telegraph. 

Exchange  and  collection  charges. 

Light  and  heat  for  office. 

Similar  expenses  of  factory  office. 


19 


GENERAL  OVERHEAD  EXPENSE 


93  GENERAL  EXPENSE 

DR.     Legal  fees. 

Audit  and  appraisal  fees. 

Association  membership  and  convention  expenses. 

Trade  paper  subscriptions. 

Miscellaneous  expense  which  cannot  be  charged  to 
other  operating  accounts. 

Compensation  paid  to  injured  employees,  not  recov- 
erable from  Insurance  Companies. 

Charge  to  this  account  sparingly. 

94  BAD  DEBTS 

DR.     Uncollectable  accounts.     (See  page  37.) 


20 


STOCK  ACCOUNTS—SUPPLIES  AND  FINISHED  GOODS 

100  No.  2  CANS 

DR.     No.  2  Cans,  including*  freight  and  labor  unloading. 

101  No.  2y2  CANS 

DR.     No.  2J4  Cans,  including  freight  and  labor  unloading. 

102.     No.  3  CANS 

DR.     No.  3  Cans,  including  freight  and  labor  unloading. 

110     No.  2  BOXES 

DR.     No.  2  Boxes,  including  freight  and  labor  unloading. 
No.  2  Shooks  and  labor  making. 

111.     No.  2%  BOXES 

DR.     No.  2^  Boxes,    including    freight    and    labor    un- 
loading. 
No.  2]/2  Box  Shooks  and  labor  making. 

112     No.  3  BOXES 

DR.     No.  3  Boxes,  including  freight  and  labor  unloading. 
No.  3  Box  Shooks  and  labor  making. 

120  LABELS 

If  labels  (with  or  without  imprinting)  may  be  used 
for  two  or  more  commodities,  charge  same  to  this 
account,  including  freight. 

121  SUGAR  AND  SALT 

DR.     Sugar,  salt  and  inward  freight. 
CR.     Sales  of  these  commodities. 

140  CANNED  CORN 

141  CANNED  PEAS 

142  CANNED  TOMATOES 

DR.     Inventory   of  canned   goods  at  beginning  of  fiscal 
period. 
Canned  goods  purchased. 

CR.      Inventory  of  canned  goods  at  close  of  fiscal  period. 

21 


MISCELLANEOUS  ACCOUNTS 

160  DISCOUNT  RECEIVED 

CR.     Cash  discounts  received  on  purchases. 

161  INTEREST  RECEIVED 

CR.     Interest  received  on  notes  and  accounts. 

162  ENSILAGE 

CR.     Ensilage  sold. 

163  INCIDENTAL  INCOME 

CR.      Sales  of  barrels  and  other  containers. 

Sale  of  hard  corn,  peas,  ripe  tomatoes,  etc. 
Storage  and  insurance  billed  to  customers. 
Sale  of  waste  products  of  factory. 
Sales  of  dented  canned  goods. 

Miscellaneous  factory  income  from  every  source,  ex- 
cept sales  of  sugar  and  salt. 
Retail  or  accommodation  sales  of  green  produce. 

164  INTEREST  RESERVE 

After  crediting  to  this  account  at  the  close  of  the 
fiscal  year  the  amount  of  interest  account  invest- 
ment, as  directed  on  page  45,  close  the  account 
by  transfer  to  Profit  and  Loss. 

165  PROFIT  AND  LOSS 

To  be  opened  at  end  of  year  only.  (See  page  48.) 
Balance  to  be  carried  to  Account  No.  61, 
Surplus  Account. 

166  ACCOUNTS  RECEIVABLE  RESERVE 

See  page  37. 

167  CONTINGENT  RESERVE 

See  Account  No.  217. 

168  FARM  PROFIT  AND  LOSS 

To  be  opened  at  close  of  year  only — see  instruc- 
tions elsewhere  in  this  classification. 

98  EXCESS  PROFITS  TAXES 

DR.      State  and  Federal  Excess  Profits  Taxes. 

99  INTEREST  ON  LONG  TERM  NOTES 

DR.     Interest  on  notes  or  bonds  maturing  one  year  or 
more  from  date  of  issue.     In  case  of  notes  re- 
newed, the  date  of  issue  is  construed  as  being  the 
date  of  issue  of  the  original  note. 
(See  also  No.  77.) 

97     INCOME  TAXES 

DR.     State  and  Federal  Income  Taxes. 

22 


COMMODITY  ACCOUNTS 

Direct  Factory  Cost 

200  CORN  — GREEN 

DR.  Seed  furnished  free  to  farmers  who  are  under  con- 
tract to  grow  corn  for  factory  (or  loss  on  seed  sold 
to  farmers  at  a  concessional  price). 

Green  corn  purchased  from  farmers. 

Green  corn  grown  by  factory  at  current  prices 
(credit  Farm  Income  No.  920). 

Transfer  to  this  account,  corn  proportion  of  loss 
or  gain  on  Farm  Operations.  If  a  loss,  this 
figure  represents  the  loss  due  to  crop  hazard. 

201  CORN  — DIRECT  LABOR 

DR.  Direct  labor  receiving,  preparing,  processing  and 
stacking  goods  in  warehouse. 

Wages  of  foreman,  during  pack. 

Railroad  fare,  board,  expenses  of  help,  including 
bunk  house  equipment,  and  suits  and  boots  for 
field  men  if  used  for  corn  only. 

Husking  checks  redeemed.  All  labor  employed  in 
and  about  factory  during  corn  pack,  except  as  oth- 
erwise provided  for  herein. 

202  CORN  —  CANS  USED 

DR.  Cans  used  for  corn  (by  Journal  transfer  from  Stock 
accounts  at  close  of  season). 

203  CORN  — BOXES  USED 

DR.  Boxes  used  for  corn  (by  Journal  transfer  from  Stock 
accounts  at  close  of  season). 

204  CORN  —  LABELS 

DR.  Labels  purchased  for  corn,  including  freight  and  ex- 
press on  same. 

Labels  purchased  and  charged  to  Labels  Account  and 
used  for  corn  (by  Journal  transfer  from  Stock 
account  at  close  of  season). 

Label  allowances  to  buyers  of  canned  corn. 
23 


COMMODITY  ACCOUNTS 

Direct  Factory  Cost 

205     CORN  — CONDIMENTS  USED 

DR.     Sugar  and  Salt  used  for  corn  (by  Journal  transfer 
from  Stock  accounts  at  close  of  season). 

Other  spices  or  seasonings  used. 


Factory  Overhead  Expense 
207     CORN  — DEPRECIATION  EXPENSE 

Instructions  regarding  depreciation  are  given  else- 
where in  this  Classification. 

209     CORN  — FACTORY  EXPENSE 

DR.     Royalties  and  rentals  of  leased  machines  used  ex- 
clusively for  corn. 

Miscellaneous  factory  expense  chargeable  to  corn. 

Small  tools  and  appliances  used  exclusively  on  corn. 

Any  item  listed  under  Factory  Expense  (75) 
which  can  be  equitably  charged  to  Corn  Factory 
Expense. 

211     CORN  —  INTEREST   ON   SHORT   TERM   NOTES 

Charge  through  Journal  only  at  end  of  year,  as  ex- 
plained on  page  46. 


24 


COMMODITY  ACCOUNTS 
Selling  Expense 

212  CORN  — BROKERAGE  AND  COMMISSION 

DR.     Brokerage  paid  on  corn  sales. 

213  CORN  — SELLING  EXPENSE 

DR.     Salaries  and  expenses  of  salesmen. 

Advertising — Price  Lists. 

Cost  of  samples  and  express  on  same — Cartons  and 
parcel  postage. 

Demonstration  and  display. 

Travelling  and  entertainment  in  the  interest  of  sell- 
ing canned  corn. 

All  expenses  of  selling  corn,  except  brokerage. 

See  also  Selling  Expense  (80). 

214  CORN  —  WAREHOUSING  EXPENSE 

Charge  through  Journal  entry  only,  at  close  of  fis- 
cal year.     (See  page  44.) 

216     CORN  — SALES  ALLOWANCES 

DR.     Allowances    to    buyers    for    overcharge,    shortage, 
spoils,  swells. 

Inward    freight    and    cartage    on  canned  corn  re- 
turned. 


General  Expense 
215     CORN  — GENERAL  EXPENSE 


Charge  to  this  account  direct,  only  such  corn  ex- 
pense as  cannot  possibly  be  charged  to  other  "two 
hundred,,  accounts. 


25 


COMMODITY  ACCOUNTS 
Other  Expense 

217  CORN  — CONTINGENT  EXPENSE 

This  account  is  created  and  used  to  provide  a 
margin  of  safety  covering  losses  or  expenses, 
such  as  those  resulting  from  fire,  accidents  to 
employees  not  covered  by  insurance,  or  insuf- 
ficiently covered ;  crop  failure,  excessive  spoil- 
age, overproduction,  etc. 

Charge  this  account  with cents  per  doz.  for 

all  goods  packed,  and  credit  Contingent  Reserve 
167. 

208     CORN  —  INCOME  TAXES 

Charge  through  Journal  entry  only  at  close  of  fiscal 
year.     (See  page  43.) 

218  CORN  —  INTEREST  ON  LONG  TERM  NOTES 

Charge  through  Journal  entry  only  at  end  of  fiscal 
year.     (See  page  46.) 

219  CORN  —  INTEREST  (a/c  Investment) 

At  close  of  year  transfer  portion  of  the  account  In- 
terest (a/c  Investment)  to  this  account,  as  ex- 
plained on  page  45. 


26 


COMMODITY  ACCOUNTS 


Sales  Accounts 


220     CORN— -SALES 


CR.     Sales  of  canned  corn,   including  outward   freight 
billed. 

DR.     Allowances  for  canned  corn  returned. 


225     CORN-— SALES  FREIGHT 

DR.     Outward  freight  and  cartage  paid  on  canned  corn 
sold. 


Freight  allowances  to  buyers. 


Accounts  200-225  Corn,  are  typical  of 

Accounts  300-325  Peas 

Accounts  400-425  Tomatoes,  etc.,  as  outlined  on  page  11 


27 


FARM  ACCOUNTS 

900  FARM  LABOR 

DR.  Labor  plowing  and  fertilizing  land  and  seeding,  cul- 
tivating and  harvesting  crops. 

Salary  of  farm  superintendent,  farm  and  barn  help. 

901  HORSES  AND  MULES 

DR.     Horses  and  mules  used  in  farming. 

Feed,  shoeing  and  veterinary  service. 

902  FARM  EQUIPMENT 

DR.     Farming  implements,  wagons,    harness,    tools,    etc. 

903  FERTILIZERS 

DR.     Fertilizers  purchased  and  freight  thereon. 

Fertilizers  produced  on  own  farms — if  practicable. 

904  SEED  CORN 

DR.     Inventory  at  start. 

Seed  corn  purchased. 
Factory  grown  seed. 

CR.  Seed  furnished  free  to  farmers  who  are  under  con- 
tract to  grow  corn  for  factory  (or  loss  on  seed 
sold  to  farmers  at  a  concessional  price). 

(Charge  Corn— Green  200.) 

CR.     Inventory  at  close. 

905  PEA  SEED 

DR.     Inventory  at  start. 

Pea  seed  purchased. 
Factory  grown  seed. 

CR.  Seed  furnished  free  to  farmers  who  are  under  con- 
tract to  grow  peas  for  factory  (or  loss  on  seed 
sold  to  farmers  at  a  concessional  price). 

(Charge  Peas— Green  300.) 
28 


FARM  ACCOUNTS 

906  FARM  RENT 

DR.     Rent  paid  for  farms  actually  rented  from  others. 

907  FARM  DEPRECIATION  EXPENSE 

DR.     Depreciation  of  farm  property  subject  to  deprecia- 
tion. 

908  MISCELLANEOUS  SEED 

DR.     Seed  purchased  for  crop  rotation. 

909  CATTLE  ACCOUNT 

DR.     Cattle  purchased. 

Feed  purchased  for  cattle. 

Ensilage  and  farm  grown  feed  consumed. 

Labor  of  barn  man  in  charge  of  cattle. 

CR.     Cattle  sold. 

Open  separate  accounts  with  different  classes  of  stock  if 
desired. 

910  GENERAL  FARM  EXPENSE 

DR.     Gasoline  for  gas  engines. 

Coal  for  tank  heaters. 

Farm  telephone  rent. 

All  petty  expenditures  for  the  benefit  of  the  whole 
farm. 

Livery  and  auto  hire  for  farm  use. 

Insurance  on  live  stock  and  farm  buildings. 

Taxes  on  farm  property — real  and  personal. 

911  FARM  MAINTENANCE 

DR.     Cost  of  repairing  fences,  buildings  and  all  expenses 
of  upkeep. 

29 


FARM  ACCOUNTS 

912  FARM  INTEREST  (a/c  Investment) 

Charge  this  account  with  interest  on  farm  lands 
owned  by  Company. 

If  there  are  mortgages  against  these  farms  charge 
only  the  interest  on  equity  to  account  912. 

Credit  Interest  Reserve  (164) 

913  FARM  INTEREST  PAID 

Charge  this  account  with  interest   paid  on   farm 
mortgages. 

920     FARM  INCOME 

CR.     Produce  grown  for  factory  at  current  prices. 

Sales  of  farm  produce  and  waste  products. 

Hauling  for  farmers. 

Other    Farm    Income,    including    teaming,    house 
rent,  pasture  rent,  etc. 

925     FARM  LANDS 

A  separate  account  is  carried  with  each  parcel  of 
real  estate  owned. 

Charge  original  cost,  also  filling,  tiling,  roadways 
and  other  improvements. 

930     FARM  BUILDINGS 

Charge  this  account  with  cost  of  farm  buildings 
and  actual  new  additions. 

Charge  repairs  and  renewals  to  No.  911. 

935     FARM  BUILDINGS  DEPRECIATION  RESERVE 

Credit   Depreciation  on   Farm    Buildings    (charge 
No.  907). 


30 


INSTRUCTIONS      FOR      THE      ACCOUNTANT 
REGARDING    METHOD    OF    USING    CLASSIFICATION 

What  Books  This  system  of  keeping  accounts  does  not  necessarily 
Are  Necessary  call  for  new  books  or  different  books  from  those  now 
in  use. 

It  does  require  books,  however,  and  books  of  the  best  quality  are 
recommended. 

Books  should  be  kept  by  double  entry. 

Ledger  Any  standard  ledger,  bound    or   loose-leaf,    may    be 

used.  Some  considerations  favor  a  loose-leaf  book, 
especially  if  accounts  with  customers  and  creditors  are  carried  in 
the  same  ledger.  If  a  loose-leaf  ledger  is  used,  a  standard  size  is 
recommended — sheet  11  x  11,  9  x  12,  or  12  x  11. 

Get  a  good  ledger.  Cheap  books  are  poor  economy — to  say  noth- 
ing of  the  respect  and  care  that  high  grade  materials  command, 
both  from  proprietor  and  bookkeeper. 

Cash  Book       It  is  not  possible  to  name  any  book  which  is  alike 
adaptable  to  all,  but  a  150    folio    page,  six  column 
journal,  demi  size,  15^  x  10*4  or  thereabouts,  will  probably  meet 
the  needs  of  the  greater  number. 

Journal  This  may  be  a  little  smaller  than  the  Cash  Book,  ruled 

with  2  or  3' columns  at  right  of  writing  space — 100 
pages  (cap  size,  13^x8^4). 

Sales  For  this  purpose  a  standard  size  recapitulation  sheet, 

Journal  %y2  x  11,  punched  to  fit  a  binder,  is  recommended. 

Stationers  in  the  larger  cities  carry  multiple  col- 
umn books  which  serve  the  same  purpose. 

Pay-Roll  No  special  form  of  pay-roll  book  is  recommended. 

Book 

Stock  and        The  use  of  stock  or  stores  records  and  purchase  requi- 

Purchase  sitions  is  optional. 

Records 

Designation     Ledger  accounts  in  this  classification  are  designated 
of  Accounts    both  by  name  and  number.    These  may  be  used  inter- 
changeably.    The  ledger  account,  for  example,  will 
bear  the  name  POWER  PLANT  EXPENSE  and  also  show  the 


31 


account  number  71."  When  charging  labor  or  supplies  to  this 
account  the  pay  roll  or  invoice  may  carry  either  the  number  or  the 
name,  or  both,  to  indicate  the  account  to  be  charged. 

The  terms  "Corn,"  "Peas,"  "Tomatoes,"  used  herein,  are  illus- 
trative only.  The  names  of  any  commodities  manufactured  may  be 
substituted  therefor. 

All  account  names  given  in  this  classification,  for  that  matter, 
are  merely  suggestive,  and  if  some  other  name  better  suits  any  asset, 
expense  or  income  account,  that  name  should  be  substituted.  The 
Classification  should  be  made  to  fit  the  business,  rather  than  try 
to  make  the  business  fit  the  Classification.  The  general  division 
of  accounts,  however,  should  be  closely  adhered  to.  Combine  or 
subdivide  under  the  divisional  headings  according  to  your  individual 
requirements.      v 

Adaptation  of  If  two  factories  in  different  localities  are  operating 
Classification  substantially  as  a  single  enterprise  then  the  "200"  ac- 
to  Two  or  counts  may  be  used  for  corn  at  Factory  A  and  the 
More  Fac-  "500"  accounts  may  be  used  similarly  for  corn  at 
tories  Factory  B.     It  may  be  advisable  further,  in  some  in- 

stances, to  separate  any  or  all  of  the  general  factory 
expenses  and  general  office  expenses  by  having  a  separate  set  of 
accounts.  Use  the  same  numbers,  but  follow  the  number  with  the 
letter  A  to  indicate  Factory  A,  and  a  separate  ledger  account  of 
the  same  number  followed  by  B,  to  provide  for  similar  expenses  at 
Factory  B.  * 

The  method  of  gathering  these  expenses  together  at  the  year's 
end,  particularly  the  office  expenses,  is  one  that  can  scarcely  be 
discussed  in  an  outline  such  as  this.  Special  considerations  might 
favor  combining  all  expenses  of  Factory  B  separately,  to  determine 
the  cost  of  producing  goods  at  Factory  B.  In  other  instances, 
accounts  74-A  and  74-B,  for  example,  or  91-A  and  91-B,  would 
be  combined  and  figured  as  one  account  at  the  end  of  the  year,  the 
only  object  in  keeping  them  separate  during  the  year  being  to 
obtain  information  concerning  the  total  of  these  items  at  each 
plant.  Selling  Expenses  at  both  factories  would  almost  invariably 
be  charged  to  a  single  set  of  selling  expense  accounts. 

Treatment  When  packing  an  incidental  or  side  line,  it  is  not  ad- 

of  Smaller  visable    to    attempt    to    departmentize    each    separate 

Commodity  product,  but  rather  group  kindred  items  under  the 

Accounts  headings : 

Sweet  Potatoes  Costs. 
Sweet  Potatoes  Sales. 

Small  Fruits  Costs. 
Small  Fruits  Sales. 

32 


Similar  consolidations  of  other  miscellaneous  or  incidental  lines 
may  be  made,  not  so  much  for  the  information  obtained  concern- 
ing these  incidental  lines  as  to  distinguish  these  expenses  and  in- 
come from  those  of  the  regular  lines. 

Investment  The  method  of  acquiring  the  property  does  not  con- 
Accounts  cern  us  here.  It  may  be  given  by  the  founders  in 
exchange  for  capital  stock;  it  may  be  acquired  from 
the  municipality  without  payment  of  cash,  or  at  a  concessional 
price,  in  consideration  of  locating  the  factory  at  a  certain  place. 
It  may  be  acquired  through  consolidation  of  companies,  or  as  a 
straight  out-and-out  purchase  for  value,  or  taken  in  trade;  but  in 
any  case,  the  property  acquired  is  very  properly  charged  to  a 
ledger  account,  which  accurately  and  briefly  describes  the  asset. 

Charges  to  Investment  Accounts  should  be  fully  itemized  so  that 
a  list  of  the  property  can  be  made  from  the  books,  for  appraisal, 
for  proof  of  fire  loss,  and  for  valuation  in  case  of  sale  or  purchase 
of  all  or  any  part  of  plant  equipment. 

These  values  should  not  be  changed  except  in  case  of  sale  or 
abandonment  of  equipment,  or  purchase  of  new  additional  equip- 
ment, or  re-appraisal. 

Charge  cost  or  appraisal  value,  and  actual  new  additions  only. 
Charge  repairs,  replacements  and  renewals  to  appropriate  factory 
expense  or  commodity  accounts. 

Machinery  purchased  and  used  exclusively  for  the  manufacture 
of  peas,  for  example,  is  charged  to  Pea  Machinery  (7).  Buildings 
used  exclusively  for  packing  corn  are  charged  to  Corn  Build- 
ings (4). 

Property  used  for  manufacturing  more  than  one  commodity  is 
charged  to  General  Buildings  (2),  General  Machinery  (3),  etc. 
Itemize  all  charges  to  Investment  Accounts. 

It  is  extremely  important  that  a  sharp  distinction  be  observed 
between  charges  to  Investment  accounts  (2  to  20)  and  Repair 
and  renewal  accounts  (72  and  92).  Investment  Accounts  should 
be  charged  with  new  additional  equipment  only.  Equipment  pur- 
chased to  replace  wornout  equipment  should  be  charged  to  the 
appropriate  repair  account.  Extraordinary  repairs  which  it  is  not 
advisable  to  charge  against  the  profits  of  a  single  year  should  be 
charged  to  a  separate  Rehabilitation  Expense  account.  This  ex- 
pense may  be  spread  over  two  or  more  years,  but  it  should  be 
entirely  charged  off  against  operating  expense  within  a  compara- 
tively short  term. 


33 


Depreciation    Depreciation  on  Buildings,  Machinery  and  Equipment 
is  charged  at  the  end  of  the  fiscal  year  only. 

Depreciation  on  Corn  Buildings  is  charged  to  Corn  Depreciation 
Expense  (207)  and  credited  to  Corn  Buildings  Depreciation  Re- 
serve (37). 

Depreciation  on  Corn  Machinery  is  charged  to  Corn  Deprecia- 
tion Expense  (207)  and  credited  to  Corn  Machinery  Depreciation 
Reserve  (38). 

Depreciation  on  General  Buildings  is  charged  to: 

Corn — Depreciation  Expense  (207) 

Peas — Depreciation  Expense  (307) 

Tomatoes — Depreciation   Expense    (407) 

according  to  the  proportion  established  for  Accounts  70,  72,  75,  76. 
Credit  General  Buildings  Depreciation  Reserve  (32). 

Depreciation  on  General  Machinery,  is  charged  to : 

Corn — Depreciation  Expense  (207) 

Peas — Depreciation  Expense  (307) 

Tomatoes — Depreciation  Expense    (407) 

Credit  General  Machinery  Depreciation  Reserve  (33). 

Depreciation  on  Office  Furniture  and  Fixtures  is  charged  to 
Office  Expense  (92)  and  credited  to  Office  Furniture  and  Fixtures 
Depreciation  Reserve  (51). 

Rates  of  The  following  rates  of  depreciation  are  taken  from 

Depreciation    the  report  of  the  Cost  Committee  of  the  New  York 
Canners'  Association. 

The  percentages  here  named  are  understood  to  be  minimum 
annual  rates: 

Per  Cent 

Buildings,  Brick,  Stone  or  Cement 2 

Buildings,  brick,  stone  or  cement ;  shingle,  gravel 

or  composition  roof — wood  floor 3 

Buildings,  Frame — any  roof — wood  floors 4 

Sheds,  cement  floors 4 

Office  Furniture  and  Fixtures 5 

Machinery 10 

i 

24 


The  question  of  depreciation  must  be  squarely  faced- and  an 
adequate  rate  applied  to  diminish  the  plant  value,  so  that  when 
equipment  is  worn  out  or  abandoned  the  cost  of  the  property  less 
salvage  value  will  have  been  charged  off. 

Canned  Goods  All  sales  of  canned  corn  are  credited  to  this  account, 
Sales  without  respect  to  size  of  cans.    Sales  are  summarized 

according-  to  sizes,  and  these  summaries  show  the 
number  of  dozens  opposite  the  amount  of  each  sale.  That  is  to 
say:  No.  1  size  is  summarized  both  as  to  quantities  and  amounts; 
No.  2  is  summarized  the  same  way.  The  total  amount  of  No.  1 
sales  is  credited  to  "Corn  Sales."  The  total  amount  of  No.  2  sales 
is  credited  to  "Corn  Sales."  The  summary  affords  statistical 
information  concerning  quantities  and  values  of  each  size. 

It  is  presumed  that  canned  goods  sold  to  officers  and  employees 
or  to  local  tradesmen  will  be  billed  the  same  as  all  other  sales  of 
canned  goods,  so  that  the  file  containing  copies  of  invoices  will 
exhibit  a  complete  record  of  sales  both  as  to  the  quantity  and 
value.  This  does  not  imply  that  a  ledger  account  must  be  opened 
for  each  person  who  buys  canned  goods.  An  account  may  be 
opened  if  desired  with  CASH  CUSTOMERS,  which  account  is 
charged  through  the  Sales  invoice  and  credited  through  the  cash 
book  simultaneously. 

Canned  Goods  The  factory  should  keep  a   record  of  canned  goods 
Samples  sent  as  samples.     At  the  end  of  the  year  these  goods 

are  charged  to  accounts  213,  313,  etc.,  at  the  same 
price  at  which  finished  goods  are  taken  into  the  inventory. 
Credit  Sales  Accounts  220-320,  etc. 

Quantity  of     The  number  of  cans  of  finished  goods  produced  is 
Salable  arrived  at  from  day  to  day  through  the  record  of  the 

Canned  Goods  can  counters  or  crates,  or  stacks  warehoused.     There 
Produced  is  naturally  some  shrinkage  after  the  goods'pass  these 

counters  and  before  they  are  shipped.  Furthermore, 
the  counters  themselves  may  include  some  block  of  goods  twice 
or  omit  them  altogether.  The  dented  tins,  spoilage  or  factory  cut 
samples  reduce  the  total  merchantable  pack.  For  our  purpose, 
therefore,  the  following  method  is  suggested  for  arriving  at  actual 
pack: 

Cases 
Sold  during  year  (including  samples  sent  out) .  .   250,000 
Inventory    at   close 50,000 

Total 300,000 

Less  Inventory  at  start . 60,000 

Packed,  current  year 240,000 

35 


Customers        This  classification  is  intended  to  cover  "Company 

and  Creditors   Accounts"  only  or  as   may  be  said,  the   accounts 

which  the  Company  keeps  with  itself: 

Accounts  with  individual  customers  (Accounts  Receivable)  or 

Accounts  with  individual  creditors  (Accounts  Payable)  are 
not  shown  herein. 

It  is  pertinent  to  say,  however,  that  when  the  Company  pays 
out  money  for  others,  the  safe  rule  is  to  charge  the  personal  ac- 
count of  the  individual  or  firm  to  whom  or  for  whose  account  the 
money  is  paid  out.    Under  this  head  appear : 

Freight  paid  on  goods  bought  F.  O.  B.  delivery  point. 

Freight  paid  on  goods  sold  F.  O.  B.  factory. 

Advances  to  salesmen. 

Advances  on  salary. 

Advances  for  purchases,  as  to  one  who  is  going  out  to  buy  seed 
or  cattle. 

Payments  on  account  of  contract,  etc.,  etc. 

Accounts  Receivable  may  be  grouped  separately  if  desired,  and 
operated  as  a  separate  or  subsidiary  ledger.  # 

Green  If  allowance  is  made  to  farmers  on  account  of  bad 

Produce  crops,   such   allowances    are   an   item   of   cost   and 

should  be  charged  to  the  Green  Produce  accounts 
200-300,  etc. 

Salaries  The  time  of  the  active  head  or  heads  directing  the 

.  business  should  be  charged  as  a  part  of  the  costs. 
These  salaries  are  to  be  reckoned  at  such  compensation  as  would 
be  paid  a  man  or  men  of  similar  capacity  who  otherwise  would 
be  employed  for  such  duty. 

Prepaid  Freight  prepaid  on  goods  sold  f.  o.  b.  factory  should 

Freight  be  charged  to  the  buyer  direct  from  the  Cash  Book. 

If  such  an  item  is  included  in  the  invoice  to  the 
buyer,  be  sure  that  it  is  not  included  (again)  as  a  charge  to 
Accounts  Receivable,  or  as  a  credit  to  sales  accounts  220-320,  etc. 

Freight  These    and    other   expenses    of    transportation   are 

Cartage,  charged  to  the  account  to  which  the  thing  trans- 

Drayage,  ported   belongs.      For  example   freight   on   cement 

Parcel  Post,      used  for  a  silo  is  charged  to  the  same  investment 
Express  account  as  the  silo.     Freight  on  cans  is  charged  to 

can  accounts  100,  101,  102. 


Accounts  At  the  end  of  the  year,  the  Accounts  Receivable  out- 

Receivable       standing  should  be  carefully  reviewed  with  reference 
Reserve  to  the  probability  of  collection.     Liberal  allowances 

should  be  made  for  accounts  doubtful  of  collection. 
Assume,  for  example,  that  the  possible  loss  due  to  failure  to  col- 
lect all  Accounts  Receivable  at  December  31st,  is  $500.00.  Make 
a  journal  entry  thus : 

DR.     Bad  Debts  (94) $500.00 

CR.     Accounts  Receivable  Reserve  (166)  $500.00 

To  provide  against  anticipated  loss 
in  collecting  Accounts  Receivable 
outstanding  Dec.  31,  191 — . 

Any  time  after  January  1st  following,  when  any  Accounts  Receiv- 
able prove  to  be  uncollectable  (as  when  the  final  dividend  has 
been  declared  on  a  bankrupt  estate,  or  when  a  composition  has 
been  made  with  a  debtor)  charge  the  uncollectable  portion  or 
loss  to  Accounts  Receivable  Reserve  and  credit  the  debtor.  At 
the  end  of  the  succeeding  year  Accounts  Receivable  Reserve  may 
show  either  a  debit  or  credit  balance,  and  this  balance  must  be 
similarly  adjusted  at  the  end  of  this  succeeding  year,  repeating 
the  method  hereinabove  described. 

Daily  Record  Sometimes  it  is  desirable  to  operate  a  Daily  Record 
of  Costs  of  Costs  for  the  purpose    of    comparing    the    green 

produce,  labor  and  supplies  used  with  the  canned 
goods  output.  For  this  purpose  all  items  used  for  the  day  or 
week,  or  other  period  which  the  inquiry  covers,  which  are  charged 
to  accounts  Nos.  200,  201,  202,  203,  204  and  205,  should  be  totaled 
and  this  total  compared  with  finished  goods  produced  within  the 
same  period. 

Total  Factory  Costs  can  be  estimated  by  adding  to  the  sum  of 
the  above  items  the  average  cost  of  the  items  omitted,  based  on 
your  experience  of  past  years.  This  total  is  of  some  value  as  a 
gauge  of  factory  efficiency,  but  it  is  not  THE  COST.  True  costs 
cannot  be  accurately  known  until  the  close  of  the  season  or  year, 
when  the  total  pack,  total  expenditures,  costs,  wastes,  damage  and 
depreciation  are  finally  determined. 


37 


Insurance  at    Canners  who  carry  this  class  of  insurance  will  find 
Canners  it  convenient  to  open  three  sub  accounts  73  a,  73  b, 

Exchange.         73  c. 


73a  CANNERS  EXCHANGE  EXPENSE  AND  GUARAN- 
TEE FUND  DEPOSIT. 

DR.     Unexpired  Insurance  at  beginning  of  year. 
Insurance  premiums  paid. 

CR.      Refund,  account  cancelled  policies. 

Annual  refund  from  Canners  Exchange. 
Reserve  accumulated  during  current  year. 
(Charge  Surplus  Reserve  Deposit.) 
Unexpired  Insurance  at  close  of  year. 

The  debit  balance  appearing  on  this  account  at 
the  close  of  the  year  after  all  the  foregoing  entries 
have  been  made  represents  cost  of  insurance  for 
the  year,  and  as  such  should  be  handled  the  same 
as  account  No.  73. 


73  b     CANNERS  EXCHANGE  RESERVE  FUND  DEPOSIT. 

DR.     Balance  brought  forward  at  beginning  of  year. 

Reserve  Fund  portion  of  policies  paid  (Expense 
and  guarantee  fund  portion  of  new  insurance  is 
charged  to  73  a). 

CR.     Reserve  Fund  returned  by  Canners  Exchange  upon 

cancellation  of  insurance. 

The  debit  balance  on  this  account  should  at  all 
times  equal  $2.00  for  each  $1,000.00  of  insurance  in 
force.     (The  unit  of  $2.00  is  not  split.) 

73  c     CANNERS    EXCHANGE    SURPLUS    RESERVE    DE- 
POSIT. 

DR.     Balance  brought  forward  at  beginning  of  year. 

Interest  credited  on  this  Reserve  per  information 

of  Canners  Exchange. 
Surplus  reserve  (which  reserve  is  simultaneously 
credited  to  73  a). 

The  debit  balances  appearing  on  73  b  and  73  c 
are  carried  forward  as  assets  to  the  year  following, 
as  is  also  the  Unexpired  Insurance  at  close  of  the 
year  shown  in  73  a. 

38 


INSTRUCTIONS  FOR  CLOSING  BOOKS 

Accounts  100,  101,  102— CANS 

At  the  close-  of  the  fiscal  year  take  inventory  of  these  supplies 
and  transfer  the  cost  of  used  cans  by  Journal  Entry  to  the 
following  commodity  accounts  in  proportion  to  the  number 
of  cans  of  each  commodity  packed,  taking  up  any  shortage 
pro  rata. 

Corn— Cans  Used  (202) 

Peas— Cans  Used  (302) 

Tomatoes — Cans  Used  (402) 

Cans  Used  (502) 

Cans  Used  (602) 

Accounts  110,  111,  112— BOXES 

At  the  close  of  the  fiscal  year  take  inventory  of  these  supplies 
and  transfer  the  cost  of  used  boxes  by  Journal  Entry  to  the 
following  commodity  accounts  in  proportion  to  the  number 
of  cases  of  each  commodity  packed,  taking  up  any  shortage 
pro  rata. 

Corn— Boxes  Used  •  (203) 

Peas— Boxes  Used  (303) 

Tomatoes — Boxes  Used  (4&5) 

Boxes  Used  (503) 

—Boxes  Used  (603) 

Account  120— LABELS 

At  the  close  of  the  fiscal  year  take  inventory  of  these  supplies 
and  transfer  the  cost  of  used  labels  by  Journal  Entry  to  the 
following  commodity  accounts,  according  to  the  actual  stock 
used. 

Corn— Labels  (204) 

Peas— Labels  (304) 

Tomatoes — Labels  (404) 

Labels  (504) 

Labels  (604) 

Under  this  method  of  distribution  it  is  necessary  for  the  stock- 
man or  other  factory  employee  to  keep  a  record  of  label  stock 
used  in  the  manufacture  of  each  commodity. 
Account  99— INTEREST  ON  LONG  TERM  NOTES 

At  the  close  of  year  transfer  balance  of  this  account  to  the  fol- 
lowing accounts  on  the  basis  of  number  of  dozens  packed  of 
each  commodity. 

Corn — Interest  on  Long  Term  Notes  (218) 

Peas — Interest  on  Long  Term  Notes  (318) 

Tomatoes — Interest  on  Long  Term  Notes  (418) 

Interest  on  Long  Term  Notes  (518) 

L — Interest  on  Long  Term  Notes  (618) 

39 


Account  121— SUGAR  AND  SALT 

At  the  close  of  the  fiscal  year  take  inventory  of  this  account 
and  transfer  the  cost  of  used  condiments  by  Journal  Entry 
to  the  following  commodity  accounts  according  to  actual 
stock  used. 

Corn — Condiments  Used  (205) 

Peas — Condiments  Used  (305) 

Tomatoes — Condiments  Used  (405) 

Condiments  Used  (505) 

Condiments  Used  (605) 

Under  this  method  of  distribution  it  is  necessary  for  the  stock- 
man or  other  factory  employee  to  keep  a  record  of  quan- 
tities of  Sugar  or  Salt  stock  used  in  the  manufacture  of  each 
commodity. 


Account  71— POWER  PLANT  EXPENSE 

At  the  close  of  the  fiscal  year  transfer  the  cost  of  coal  used,  by 
Journal  Entry  to  the  following  commodity  accounts  accord- 
ing to  actual  coal  used  for  each  commodity.  If  this  method 
is  impractical,  distribute  same  as  accounts  70-72,  75,  76.  In 
either  case  the  charge  will  be  made  to  the  following  accounts. 

Corn — Condiments  Used  (205) 

Peas — Condiments  Used  (305) 

Tomatoes — Condiments  Used  (405) 

Condiments  Used  (505) 

Condiments  Used  (605) 


Account  162— ENSILAGE 

Ensilage  should  be  divided  according  to  the  best  judgment  of 
the  management,  based  on  the  sources  of  revenue  from  sea- 
son to  season.  For  example,  if  Pea  ensilage  produced  80 
per  cent  of  the  income  in  one  year,  credit  80  per  cent  of  this 
account  to  Green  Peas  (300)  and  if  sweet  corn  was  responsi- 
ble for  the  remaining  revenue,  transfer  the  remaining  20  per 
cent  to  Green  Corn  (200). 

40 


Accounts  900  to  920 — Farm  Accounts 

Farm  accounts  Nos.  900  to  920  are  handled  as  a  separate  and 
distinct  enterprise,  Farm  Income  (920)  is  credited  with  the 
produce  grown  for  factory  at  current  prices  at  which  similar 
produce  can  be  purchased  from  others,  which  produce  is 
charged  to  Green  Produce  accounts — (200,  300,  400,  etc.). 
These  ''900"  accounts  are  closed  into  Farm  Profit  and  Loss 
account  (168)  and  the  resultant  profit  or  loss  after  crediting 
Farm  Income  (920)  with  the  produce  grown  for  factory, 
may  be  transferred  as  a  separate  sum  to  commodity  accounts 
(200,  300,  400,  etc.)  or  to  Profit  and  Loss  Account  (165)  ac- 
cording to  the  best  judgment  of  those  in  charge  of  operations. 

Alternative  Method  of  Distributing  Farm  Accounts 

The  balance  on  the  Farm  Profit  and  Loss  Account  (168)  with- 
out Crediting  Farm  Income  (920)  with  the  produce  grown  for 
factory  may  be  distributed  according  to  the  best  judgment  of  the 
managers  to  the  several  Green  Produce  accounts  (200,  300,  400, 
etc.). 

It  is  assumed  that  Farm  Equipment,  Livestock  and  Supplies 
on  hand  at  close  of  year  will  be  inventoried  and  a  balance  brought 
down  on  each  of  these  respective  accounts,  representing  inventory. 
The  difference  on  each  of  these  accounts — as  well  as  the  ledger 
balance  on  operating  accounts  which  show  no  inventory  are  car- 
ried to  Farm  Profit  and  Loss  (168). 


U 


Accounts  70,  72,  75,  76,  88 

At  the  close  of  the  Fiscal  year  distribute,  the  balances  of  above 
accounts  among  the  several  (Commodity)  Factory  Expense 
Accounts  according  to  the  relative  number  of  cans  of  each 
commodity  packed,  after  equalizing  cans  of  different  size  ac- 
cording to  the  following  formula  (assuming  that  the  pack 
is  reduced  to  the  No.  2  equivalent) : 

200  No.  1       Cans  is  equivalent  to  100  No.  2 

80  No.  2y2  Cans  is  equivalent  to  100  No.  2 

67  No.  3      Cans  is  equivalent  to  100  No.  2  t 

20  No.  10    Cans  is  equivalent  to  100  No.  2 


The  accounts  to  be  thus  charged  are: 

Corn — Factory  Expense  (209) 

Peas — Factory  Expense  (309) 

Tomatoes — Factory  Expense  (409) 

Factory  Expense  (509) 

Factory  Expense  (609) 

Table  illustrating  this  method  of  distribution: 

Total  Corn  Peas    Tomatoes 

Number  of  Cans 

No.  2  Equivalent.... 4,320,000     1,200,000  2,400,000      720,000 

Per  cent 100.0  27.7  55.4  16.9 

Factory  Expense  (75) 

per  ledger 2,326.10      644.33  1,288.66        393.11 

All  the  above  accounts  may  be  distributed  by  a  single  Journal 

Entry. 


42 


Account  25— AUTOMOBILES 

Automobiles  belonging-  to  the  factory  are  revalued  at  the  end  of 
the  fiscal  year  and  this  value  carried  forward  to  the  follow- 
ing year.  The  operating  expense  and  loss  through  deprecia- 
tion is  chargeable  to  factory  operations  and  is  distributed  the 
same  as  accounts  70,  72,  75,  76. 
Account  80— SELLING  EXPENSE 

At  the  close  of  the  fiscal  year  transfer  this  account  by  Journal 
Entry  to  Commodity  Accounts  in  proportion  to  the  net 
amount  of  sales  credited  to  220,  320,  420,  etc.  The  accounts 
to  be  thus  charged  are : 

Corn — Selling  Expense  (213) 

Peas — Selling  Expense  (313) 

Tomatoes — Selling  Expense  (413) 

Selling  Expense  (513) 

Selling  Expense  (613) 

Accounts  73,  74 

Insurance  and  Taxes  on  Factory  property  devoted  to  specific 
commodities  are  transferred  on  the  basis  of  relative  investment 
values,  to : 

Corn — Factory  Expense  (209) 

Peas — Factory  Expense  (309) 

Tomatoes — Factory  Expense         (409) 

— '- Factory  Expense         (509) 

Factory  Expense         (609) 

Insurance  and   Taxes   on   General    Buildings,     Machinery    and 
other  property,  as. well  as  Liability  Insurance,  are  distributed 
the  same  as  accounts  70,  72,  75,  76. 
Accounts  89,  91,  92,  93,  94 

At  the  close  of  fiscal  year  transfer  by  Journal  Entry  the  balances 
of  these  accounts  among  the  following  Commodity  Accounts 
according  to  the  proportions  established  for  accounts  70,  72, 
75,  76. 

Corn — General  Expense  (215) 
Peas — General  Expense  (315) 
Tomatoes — General  Expense  (415) 
General  Expense  (515) 


-General  Expense  (615) 


Account  97— INCOME  TAXES 

At  close  of  year  transfer  balance  of  this  account  to  the  following 

accounts  on  the  basis  of  the  earnings  of  each  commodity : 

Corn — Income  Tax  (208) 

Peas — Income  Tax  (308) 

Tomatoes — Income  Tax  (408) 

Income  Tax  (508) 

Income  Tax  (608) 

43 


Account  90— WAREHOUSING  EXPENSE 

Warehousing  Expense  is  distributed  to  the  commodities  in  pro- 
portion to  the  goods  in  storage. 

At  the  end  of  each  month  estimate  the  canned  goods  stock  of 
each  commodity  on  hand.  Accumulate  these  stock  estimates 
for  the  year  and  distribute  Warehousing  Expense  at  the  end 
of  the  year  on  the  basis  of  this  summary.  The  Journal  Entry 
will  read  as  follows: 

DR.     Corn— Warehousing  Expense  (214) $4.00 

Peas — Warehousing  Expense  (314) 3.00 

Tomatoes— Warehousing  Expense  (414)  .   2.00 

CR.      Warehousing   Expense    (90) $9.00 

Account  95— DISCOUNT  ALLOWED 

At  the  close  of  the  fiscal  year  transfer  this  account  by  Journal 
Entry  to  Commodity  Accounts  in  proportion  to  the  net 
amount  of  sales  credited  to  220,  320,  420,  etc.  The  accounts  to 
be  thus  charged  are : 

Corn — Selling  Expense  (213) 

Peas — Selling  Expense  (313) 

Tomatoes — Selling  Expense  (413) 

Selling  Expense  (513) 

Selling  Expense  (613) 

Corn — General  Expense  (215) 

Peas— General  Expense  (315) 

Tomatoes — General  Expense  (415) 

General  Expense  (515) 

General  Expense  (615) 

Account  160— DISCOUNT  RECEIVED 

If  you  are  in  the  habit  of  deducting  discount  earned  and  charging 
only  the  net  amount  to  Expense  accounts,  there  will  be  no 
entries  on  the  account  Discount  Received  (160).  If,  however, 
a  "Discount  Received"  column  is  carried  in  the  Cash  Book 
credit  the  monthly  total  to  Discount  Received  ( 160) . 


44 


Accounts  219,  319,  419,  164 

At  the  close  of  the  fiscal  year  (only)  the  following  accounts  are 
used: 

219  Corn — Interest  (a/c  Investment) 

319  Peas — Interest  (a/c  Investment) 

419  Tomatoes — Interest  (a/c  Investment) 

519 


164     Interest  Reserve. 

(A)  Charge   by   Journal   Entry,   the  interest   on  certain  ac- 

counts hereinafter  named  to  the  above  commodity  ac- 
counts, apportioning  the  total  interest  on  the  basis  of 
relative  number  of  cases  packed.     (See  page  42.) 

Credit  account  No.  164,  Interest  Reserve. 

The  accounts  on  which  such  interest  is  computed  are : 

1  Factory  Site. 

2  General  Buildings. 

3  General  Machinery. 

20     Office  Furniture  and  Fixtures. 

Figure  interest  on  above  ledger  account  less  related  De- 
preciation Reserves  on  above  properties  at  beginning 
of  current  year,  and  less  mortgages. 

(B)  Charge  219  Corn  Interest  (a/c  Investment). 
Credit  164  Interest  Reserve. 

The  accounts  on  which  such  interest  is  computed  are : 

4  Corn  Buildings. 

5  Corn  Machinery. 

Figure  interest  on  above  ledger  accounts  less  related  De- 
preciation Reserve  Accounts  at  beginning  of  current  year. 

(C)  In  a  similar  manner: 

Charge  319  Peas — Interest  (a/c  Investment). 
Charge  419  Tomatoes — Interest  (a/c  Investment). 
Credit  164  Interest  Reserve. 

45 


Accounts  77,  161 

At  the  close  of  the  fiscal  year  transfer  above  accounts  to  the  fol- 
lowing commodity  accounts,  according  to  the  proportion  estab- 
lished for  accounts  70,  72,  75,  76. 

The  accounts  to  be  thus  affected  are : 

Corn— Interest  on  Short  Term  Notes  (211) 

Peas— Interest  on  Short  Term  Notes  (311) 

Tomatoes — Interest  on  Short  Term  Notes  (411) 

Interest  on  Short  Term  Notes  (511) 

Interest  on  Short  Term  Notes  (611) 

Account  99— INTEREST  ON  LONG  TERM  NOTES 

At  the  close  of  the  fiscal  year  transfer  this  account  to  the  follow- 
ing commodity  accounts  according  to  the  proportion  established 
for  accounts  70,  72,  75  and  76.  The  accounts  to  be  thus 
affected  are : 

Corn — Interest  on  Long  Term  Notes  (218) 

Peas — Interest  on  Long  Term  Notes  (318) 

Tomatoes — Interest  on  Long  Term  Notes  (418) 

Interest  on  Long  Term  Notes  (518) 

Interest  on  Long  Term  Notes  (618) 

Account  163— INCIDENTAL  INCOME 

This  income  should  be  reviewed  at  the  year's  end  and  if  prac- 
ticable should  operate  as  a  credit  against  the  expense  accounts 
which  produced  the  revenue.  If,  however,  it  is  not  practicable 
to  so  apply  this  income,  or  if  there  is  any  portion  thereof  that 
is  not  so  applied,  transfer  to  the  following  accounts  according 
to  the  proportion  established  for  accounts  70,  72,  75,  76,  viz. : 

Corn — Factory  Expense  (209) 

Peas — Factory  Expense  (309) 

Tomatoes — Factory  Expense  (409) 

Factory  Expense  (509) 

Factory  Expense  (609) 

46 


Inventory         Finished  goods  carried  over  should  be  priced  at  cost, 
according  to  the  average  unit  cost  per  dozen  repre- 
sented by  the  sum  of  the  following  accounts  only : 

200  Corn,  Green    171 

201  Corn,  Direct  Labor 250 

202  Corn,  Cans  Used 264 

203  Corn,  Boxes  Used 059 

204  Corn,  Labels . ... 036 

205  Corn,  Condiments  Used 044 

207  Corn,  Depreciation  Expense  . 010 

208  Corn,  Income  Taxes 009 

209  Corn,  Factory  Expense 044 

211  Corn,  Interest  on  Short  Term  Notes.  .   .009 

Total  Inventory  Cost ,. 896 


Supplies  carried  over  to  the  following  year  are  inventoried  at 
cost,  including  freight 


47 


At  the  close  of  the  fiscal  year,  after  making  all  trans- 
Closing  Jour-  fers  and  adjustments  herein  directed,  and  after  carry- 
nal  Entry        ing  inventories  forward,  the  following  Journal  Entry 

is  in  order : 

220     Corn— Sales   $192,143.35 

140  Canned  Corn  (Inventory  at  close)     64,800.00 

200  Corn—Green    $34,123.45 

201  Corn— Direct  Labor  50,101.00 

202  Corn— Cans  Used 52,81974 

203  Corn— Boxes  Used 11,836.01 

204  Corn— Labels 7,210.80 

205  Corn— Condiments  Used 8,863.92 

207  Corn — Depreciation  Expense 1,893.39 

208  Corn— Income  Tax 1,573.89 

209  Corn— Factory  Expense  9,155.39 

211  Corn — Interest  on  Short  Term  Notes 1,634.00 

214  Corn — Warehousing  Expense 432.50 

212  Corn — Brokerage  and  Commission 3,055.37 

213  Corn — Selling  Expense    436.48 

216  Corn— Sales  Allowances 1,124.00 

215  Corn— General  Expense  2,874.71 

219  Corn— Interest  (a/c  Investment) 4,039.75 

217  Corn— Contingent  Expense 7,500,00 

218  Corn— Interest  on  Long  Term  Notes 900.00 

225  Corn— Sales  Freight  2,125.00 

140  Canned  Corn  (Inventory  at  start) 18,000.00 

140  Canned  Corn  (Canned  Goods  Purchased) .     2,000.00 

165  Profit  and  Loss 35,243.95 


The  above  illustration  covers  Corn  only.     Similar  entries  will  be 
required  for  each  commodity  packed. 


The  following   accounts  are  closed  directly  into   Profit   and 
Loss: 

Interest  Reserve  (164) 

Discount  Received  (160) 

Excess  Profits  Taxes  (98) 


Profit  and  Loss  (165) $39,847.24 

Surplus  (61)   $39,847.24 

To  close  Profit  and  Loss  for  year. 
48 


To  Determine  the  After  all  operating  accounts  are  transferred  to 

Average  Cost  per  Dozen   the  Commodity  Accounts,  prepare  the  following: 

CORN  MANUFACTURING  AND  INCOME  ACCOUNT 

Year  Ended  December  31,  19—. 

Per  Doz. 

No.  2 

Direct  Factory  Cost  Total          Equiv. 

200  Green   Corn    (including  cost   of  seed,  and 

farm  profit  or  loss  and  less  ensilage,  ac- 
counts 162,  168  and  900  to  920) AA  $  34,123.45          .171 

201  Direct  Labor   AA  50,101.00          .250 

202  Cans  Used  (transferred  from  accounts  100, 

101  and  102) AA  52,819.74          .264 

203  Boxes  Used  (transferred  from  accounts  110, 

111  and  112) AA  11,836.01          .059 

204  Labels  (including  transfer  from  acct.  120)  .  AA  7,210.80          .036 

205  Condiments  Used  (including  sugar  and  salt 

transferred  from  acct.  121)   AA  8,863.92          .044 

Total  100,000  cs  $164,954.92          .824 

Factory  Overhead  Expense 

207  Depreciation  Expense AA  $     1,893.39          .010 

209     Factory  Expense  (including  proportion  of 

accts.  25,  70,  71,  72,  75,  76,  88,  73,  74  and 

163)    AA  9,155.39          .044 

211  Interest  on  short  term  notes  (proportion  of 

accts  77  and  161)  AA  1,634.00          .009 

Total ■  $  12,682.78          .063 

Selling  Expense 

212  Brokerage  and  Commission   %BB  $    3,055.37          .020 

213  Other  Selling  Expense  (including  propor- 

tion of  accts.  80  and  95) BB  436.48          .003 

214  Warehousing  Expense  (proportion  of  acct. 

90)    AA  432.50          .002 

216  Sales   Allowances    BB  1,124.00          .007 

Total $    5,048.35          .032 

General  Overhead  Expense 

215  General  Expense   (including  proportion  of 

accts.  91,  92,  93,  94  and  89)   AA  $    2,874.71          .014 

Other  Expense 

217  Contingent   Expense    AA  $     7,500.00          .075 

208  Income  Taxes  (proportion  of  acct.  97).... AA  1,573.89          .009 

218  Interest  on  Long  Term  Notes  (proportion 

of  acct.  99)   AA  900.00          .004 

219  Interest  (a/c  Investment)   AA  4,039.75          .020 

Total $  14,013.64          .108 

GRAND  TOTAL  COST  &  EXPENSE.  .100,000  cs  $199,574.40       1.041 

140    Inventory  at  Start  10,000  cs  18,000.00          .900 

140     Canned  Goods  Purchased    1,000  cs  2,000.00         1.000 

Total 111,000  cs  $219,574.40 

140    Deduct  Inventory  at  close    36,161  cs  64.800.00          .896 

Net  Cost  of  Sales  BB  $154,774.40        1.034 

Sales 

220  Corn  Sales   $192,143.35 

225     Deduct  Sales  Freight  2,125.00 

NET  SALES 74,839     BB  $190,018.35       1.269 

NET   PROFIT    $  35,243.95         .235 

49 


Y>  determine  the  AVERAGE  cost  per  dozen: 

Divide  accounts  marked  A  A  by  the  number  of  dozens  packed 
(No.  2  equivalent). 

Divide  accounts  marked  BB  by  the  number  of  dozens  sold 
(No.  2  equivalent). 

The  net  profit  is  Net  Sales  less  Net  Cost  of  Sales. 

Prepare  a  separate  statement  for  each  commodity. 

This  method  of  arriving  at  unit  costs  per  dozen  furnishes 
AVERAGE  COSTS  ONLY.  Information  as  to  determina- 
tion of  unit  costs  of  different  grades,  while  most  essential,  does 
not  lie  within  the  scope  of  this  Classification. 


In  reporting  to  the  Government  on  cost  of  canned  goods 
manufactured  and  sold,  supplement  the  information  shown  in  the 
preceding  statement  with  the  details  of  items  included  in  ac- 
counts No.  209 — Factory  Overhead  Expense,  and  No.  215 — Gen- 
eral Overhead  Expense,  viz: 

FACTORY  OVERHEAD  EXPENSE 

25     Automobiles    (operating  expense  and  deprecia- 
tion)   $  1,800.00 

70  Factory  Superintendent  1,500.00 

71  Power  Plant  Expense 2,115.00 

72  Building  and  Machinery  Repairs 905.50 

75  Factory  Expense 3,010.00 

76  Factory  Rent 5,000.00 

88  Bonus — Factory  Superintendent 1,460.60 

73  Insurance 910.00 

74  Taxes 1,140.00 

Total    $17,841.10 

Less — 
163     Incidental  Income    950.00 

Total  Factory  Overhead  Expense $16,891.10 


Total  chargeable  to  Corn 9,004.49 

209     Corn — Factory  Expense   (already  charged) 150.90 

209     Corn— Factory  Expense   (total)    $  9,155.39 

The  proportion  of  the  above  Factory  Overhead  Expense  ac- 
counts to  be  charged  to  Corn  is  indicated  in  the  instructions 
given  on  pages  40,  42,  43  and  46. 

50 


GENERAL  OVERHEAD  EXPENSE 

91  Salaries— Officers  and  Managers $3,000.00 

92  Office  Salaries  and  Expense 1,224.75 

93  General  Expense  375.15 

94  Bad  Debts 48.00 

89     Bonus— Officers  and  Managers 900.00 

Total $5,547.90 

Total  chargeable  to  Corn $2,704.50 

215     General  Overhead  Expense  (already  charged)  .  170.21 

215     General  Overhead  Expense  (total)    $2,874.71 

The  proportion  of  the  above  General  Overhead  Expense  ac- 
counts to  be  charged  to  Corn  is  indicated  in  the  instructions  given 
on  page  43. 


165  PROFIT  AND  LOSS  ACCOUNT 

Credit 

Net  Profit  on  Corn  brought  forward  .$35,243.95 
Net  Profit  on  Peas  brought  forward  .     9,890.13 

160        Discount  received   1,721.00 

164         Interest    (a/c    Investment)    charged 

as  part  of  manufacturing  cost.  . . .     6,006.51 

$52,861.59 

Debit 

Fire  Loss  (net)    $     387.49 

Adjustment  1916  Tax  Account 106.00 

493.49 

Balance—  $52,368.10 

98     Excess  Profits  Tax 12,520.86 

Balance  carried  to  Surplus $39,847.24 


61  SURPLUS  ACCOUNT 

Balance  at  start $  75,000.00 

Credit  Profit  and  Loss  brought  down 39,847.24 

Balance  at  close   $114,847.24 

51 


After  books  are  closed  for  the  year,  the  open  accounts  on  the  ledger, 
representing  Assets,  Liabilities  and  Capital,  may  be  arranged  according 
to  the  following  general  form  to  show  financial  condition  of  Company 
at  close  of  fiscal  year. 

BALANCE  SHEET,  DECEMBER  31,  191— 

A  c c f*t"C  * 

925     Farm  Lands  $  14,000.00 

1  Factory  Site  2,007.17 

930     Farm  Buildings  $    4,926.31 

935         Less  depreciation  reserve   1,675.92  3,250.39 

2  Factory  Buildings— General    $  60,012.00 

4  Factory  Buildings — Corn  12,017.21 

6  Factory  Buildings— Peas 5,020.63 

$  77,049.84 
Less  depreciation  reserve   6,932.02        70,117.82 

3  Factory  Machinery— General   $  30,013.09 

5  Factory  Machinery — Corn     6,018.58 

7  Factory  Machinery— Peas   3,021.80 

$  39,053.47 
Less    depreciation    reserve    11,784.60        27,268.87 

20     Office  Furniture  and   Fixtures    $     1,027.45 

51         Less  depreciation  reserve   _      312.84  714.61 

25     Automobiles    (valued    at)    1,290.51 

Inventories: 

71         Coal     $  240.84 

100        No.  2  Cans  2,448.07 

110        No.  2   Boxes    2,086.04 

204        Labels     1,120.15 

121         Sugar  and  Salt    824.22  - 

904  Seed    Corn    805.62 

905  Pea  Seed  2,783.66 

140  Canned  Corn    64,800.00 

141  Canned   Peas    5,200.00 

73  Insurance   Unexpired    315.47 

901  Horses   and    Mules    4,000.00 

902  Farm   Equipment    1,000.00 

909         Cattle    3,909.00        89.533.07 

Accounts    Receivable    $     6,060.00 

166  Less  reserve  for  doubtful  accounts 433.00  5,627.00 

Cash    in    bank    $  11,106.30 

Cash  in  office    50.00        11,156.30 

Total    $224,965.74 

Liabilities 

Notes    Payable    ....$    4,200.00 

Accounts    Payable    1,279.18    $     5,479.18 

74  Reserve   for   Taxes    $  15,311.69 

77    Accrued   Interest    1 17-00        15,428.69 

167  Reserve    for    Contingencies    14,210.63 

60  Capital    Stock $75,000.00        __ 

61  Surplus     114.847.24      189,847.24 

Total     $224,965.74 

52 


[NDEX  TO  ACCOUNTS  AND  ITEMS  CHARGED  AND 
CREDITED  THERETO 


Accounts,  interest  received  on,  161 

receivable  reserve,  166 
Adding  machines,  20 
Advertising  price  lists,  80,  213,  313, 

413 
Allowances,  freight,  225,  325,  425 

labels,  95,  204,  304,  404 

returned  goods,  220,  320,  420 

sales,  216,  316,  416 
Appraisers'  fees,  93 
Aprons,  75 

Association  fees  and  expenses,  93 
Audit  fees,  93 
Automobiles,  25 
Auto  expense,  25 

hire,  farm,  910 

insurance,  25 

oil  and  gasoline,  25 

repairs  and  renewals,  25 


B 


Bad  debts,  94 

Bank  exchange  and  collections,  92 

Barn  labor,  900 

Barrels,  75 

sold,  163 
Baskets,  75 
Beds,  201,  301,  401 
Belting,  investment,  3 

repairs  and  renewals,  72 
Belt  tightener,  75 
Benches,  75 
Blankets,  201,  301,  401 
Block  and  tackle,  75 
Board,  factory  help,  201,  301,  401 
Boiler  and  engine  supplies,  71 
Boiler  insurance,  73 
Bonus,  factory  superintendent,  88 

officers  and   managers,  89 
Boots,  factory  or  field  men,  201,  301, 

401 
Boxes  and  shooks  bought,   110,  111, 
112 

used,  203,  303,  403 

making  benches,  75 

nails,  75 
Brokerage,  212,  312,  412 


Brooms,  75 
Brushes,  75 

Buildings,  depreciation  expense,  207, 
307,  407 
depreciation   reserve,   32,   37,  40, 

43,  911,  935 
factory,  2,  4,  6,  8 
factory,  depreciation  reserve,  32 
farm,  930 

farm,  depreciation,  911,  935 
insurance,  910 
repairs,  911 
repairs  and  maintenance,  72 
Bunk-house  equipment,  201,  301,  401 


Canned  corn,  140 

Canned  goods,  finished,  140,  141,  142 

insurance,   90 

inventory,  140,  141,  142 

labelling,  90 

labor,  201,  301,  401 

loading,  90 

purchased,  140,  141.  142 

returns,  220,  320,  420 

sales,  220,  320,  420 
Canned  peas,  141 

tomatoes,   142 
Cans    (Nos.  2,  2y2,  3)    bought,   100, 
101,  102 

freight  and  unloading,   100,   101, 
102 

used,  100,  101,  102;  202,  302,  402 
Capital  account,  60,  61 

stock,  60 
Card  punch,  75 

Cartage,  216,  316,  416;  225,  325,  425 
Cartons,  sample,  80,  213,  313,  413 
Cash  discount  received,  160 
Cattle,  909 

feed,  909 

labor,  909 

purchased,  909 

sold,  909 
Chairs,  factory,  75 
Check  protector,  20 
Checks  redeemed,  labor,  201,  301,  401 
Clocks,  75 
Coal  and  freight  thereon,  71 


53 


Coal,  labor  unloading,  71 

office,  92 

power  plant,  71 

tank  heaters,  farm,  910 

warehouse,  90 
Collection  charges,  92 
Commercial  rating  books,  92 
Commission,  212,  312,  412 
Compensation,  employees',  93 
Condiments  used,  205,  305,  405 
Consigned  goods  expense,  90 
storage,  90 
insurance,  90 
lacquering,  90 
other  expense,  90 
relabelling,  90 
Containers,  sale  of,  163 
Contingent  expense,  217,  317,  417 

reserve,  167 
Convention  expense,  93 
Corn,  boxes  used,  203 

brokerage  and  commission,  212 

buildings,  4 

buildings  depreciation  reserve,  37 

cans  used,  202 

condiments  used,  205 

depreciation  expense,  207 

direct  labor,  201 

factory  expense,  209 

foreman's  wages   (except  during 
pack),  209 

general  expense,  215 
Corn,  green,  purchased   from   farm- 
ers, 200 

labels,  204 

machinery,  5 

packing,  labor,  201 

sales,  220 

sales  allowances,  216 

sales,  freight,  225 

seed,  904 

selling  expense,  213 
Crates,  75 
Cultivating,  900 
Cuspidors,  75 


Damaged     goods,     lacquering     and 

relabelling,  90 
Demonstration  and  display,  80,  213, 

313,  413 
Dented  canned  goods,  sales,  163 
Depreciation  expense,  factory,  207, 

307,  407 

farm,  907,  911,935 
reserve,  32  to  51 
Deficit  account,  61 
Desks,  factory,  75 
Desks,  office,  20 
Direct  labor,  201,  301,  401 


Discount  allowed,  95 

received,  160 
Disinfectants,   75 

E 

Electric   current   purchased,   71,   75 

Electric  lamps,  71 

Employers  liability  insurance,  73 

Engineers,  firemen  wages,  71 

Engineers   supplies,   71 

Ensilage  consumed,  909 

sold,  162 
Entertainment,  80,  213,  313,  413 
Excess  profits  taxes,  98 
Exchange,  bank,  92 
Expense,  automobile,  25 

convention,  93 

factory,  75,  92,  209,  309,  409 

farm,  910,  911 

general,  93,  215,  315,  415 

legal,  93 

office,  92 

overhead,  75,  93 

salesmen,  80,  213,  313,  413 

selling,  80,  213,  313,  413 

warehousing,  90,  214,  314,  414 
Express  and  freight,  see  p.  38 


Factory      buildings,      depreciation 
reserve,  32 
repairs   and   maintenance,   72 

chairs,  stools,  etc.,  75 

depreciation,  207,  307,  407 

expense,  75,  209,  309,  409 

grown  seed,  904,  905 

income,  163 

labor,  75,  201,  301,  401 

machinery,      depreciation      re- 
serve, 33,  38,  41,  44 
repairs   and   maintenance,    72 

office  supplies,  92 

office   expense,   92 

rent,  76 

repairs,  72 

site,   1 

superintendent,  70 
bonus,  88 
expenses,  70 
Farm  buildings,  930 

depreciation,   907,   935 
insurance,   910 

coal  for  tank  heaters,  910 

depreciation,  907 
reserve,  935 

equipment,  902 

expense,  910 


54 


Farm,  grown  feed  consumed,  909 

implements,  902 

income,  920 

interest    (account   investment), 
912 

interest  paid,  913 
Farm  labor,  900 

land,  925 

livery  and  auto  hire,  910 

maintenance,  911 

petty  expense,  910 

produce,  920 

profit  and  loss,   168 

rent,   906 

repairs,    911 

superintendent's  salary,  900 

taxes,  910 

telephone,   910 
Federal  taxes,  excess  profits,  98 

income,  97 
Feed,  901,  909 
Fees,  93 

Fences,  farm,  repairs,  911 
Fertilizers,  903 
Fidelity  insurance,  73 
Filling,  1,  925 

Finished  goods,  140,  141,  142 
Fire#  extinguishers,  portable,  75 

insurance,  73 
Firemen's  wages,  71 
First  aid  supplies,  75 
Foreman,     factory,    wages     during 
pack,  201,  301,  401 
except  during  pack,  209,  309, 
409 
Freight  allowance,  225,  325,  425 

boxes  and  shooks,  110,  111,  112 

cans,  100,  101,  102 

fertilizers,  903 
Freight,   labels,  204,   304,  404 

out,    canned    goods,    220,    320, 
420,  225,  325,  425 

power  plant,  71 

sugar  and   salt   121 
Furniture  and  fixtures  office,  20 
factory,  75 
reserve,  51 
Flux,  75 


Gas  purchased,  75 

Gasoline  for  factory,  75 
for  farm,  910 

General  buildings,  depreciation  re- 
serve, 32 
repairs,  72 

expense,  93,  215,  315,  415 
farm  expense,  910 


General  buildings,  machinery,  depre- 
ciation reserve,  33 
repairs   and   renewals,   72 
overhead  expense,  93 
selling    expense,    80,    213,    313, 
413 

Gloves,  75 

Green  produce  purchased,  200,  300, 
400 
sold,   163 

H 

Hard  corn,  sale  of,  163 
Harness,  902 
Harvesting,  900 
Hauling  for   farmers,  920 
Hose,  75 

Horses  and  mules,  25,  901 
Horse  shoeing,  25,  901 
House  rentals,  920 
Husking  baskets,  75 

checks  redeemed,  201 


Implements,  farm,  902 
Incidental  Income,  163 
Income,  farm  920 

taxes,  97,  208,  308,  408 
Insurance,  73 

auto,  25 

billed  customers,  163 

boiler,  73 

canned  goods,  90 

consigned  goods,  90 

employees'  liability,  73 

factory,  73 

farm,  910 

fire,  73 

live  stock,  910 
Interest  (account  investment),  219, 
319,  419,  912 

farm,  913 

on    long    term    notes,    99,    218, 
318,  418 

paid,  77,  211,  311,  411,  913 

received,  161 
Interest,  reserve,  164 

short  term  paper,  77,  211,  311, 
411 
Inventory,  canned  goods,  140,  141, 
142 

finished  goods,  140,  141,  142 

pea  seed,  905 

seed  corn,  904 
Inward     freight,     returned     goods, 

216,  316,  416 
Investment  accounts,  1  to  25 


Jackscrews,  75 


55 


Kerosene,  75 
Knives,  75 


Label  allowances,  204,  304,  404 
Labeling   canned    goods,   90 
Labels    and    express    thereon,    120, 
204,  304,  404 
bought,  120 
used,  204,  304,  404 
Labor,  barn,  900,  909 

direct  factory,  201,  301,  401 
engineer  and  firemen,  71 
farm,  900 
foremen,  75,  201,  301,  401,  209, 

309,  409 
indirect,  75 
labelling,  201,  301,  401 
making  boxes,  110,  111,  112 
packing,  201,  301,  401 
Labor,    receiving,    preparing    proc- 
essing  and    warehousing,   201, 
301,  401 
unloading  boxes,   110,   111,   112 
cans,  100,  101,  102 
power  plant,  71 
Lacquer,  75 
Lacquering,  90 
Ladders,  75 
Land,   factory,   1 

farm,  925 
Lanterns,  75 
Leased    machines,    rental,    75,    209, 

309,  409 
Legal  expense  and  fees,  93 
Liability  insurance,  73 
Light,  office,  92 
Livery,  farm,  910 
Live  stock,  909 

insurance,  910 
Loading  canned  goods,  90 
Long  term  notes,  interest,  99,  218, 

318,  4L8 
Loss  and  gain,   165 

farm,    168 
Lubricating  oil,  75 


M 


Machinery    depreciation    reserve,  33, 
38,  41,  44 
factory,  3,  5,  7,  9 
investment,  3 
repairs,  72 
Machine  rentals  and  royalties,  75,  209, 
309,  409 
tools  and  parts,  3,  5,  7,  9 


Machinists'   supplies,   75 
Maintenance,  farm,  911 

general  factory  buildings,  72 

grounds,  etc.,  72 
Manager's  bonus,  89 

salary,  91 
Mattresses,  201 
Medicines,  horse,  901 
Medicines,  physicians  services  and 

other  first  aid,  75 
Miscellaneous    factory    expense,    75, 
209,  309,  409 

general,  93 

income,  163 

seeds,  908 
Mortgage  interest,  77 

farm,  913 
Mules,  901 

N 

Nails,  box,  75 

Notes,  interest  received  on,  161 

long  term,  99,  218,  318,  418 

short  term,  77 


Office,  equipment,  20 

expense,  92 

furniture  and  fixtures,  20 

furniture  and  fixtures,  reserve,  51 

supplies,  92 
Officers'  bonus,  89 

salaries,  91 
Oil  cans,  75 

Outward  freight,  220,  320,  420 
Overcharge  allowed,  216,  316,  416 
Overhead  expense,  factory,  75 

general,  93 


Packing,  for  machinists,  71 

Parcel  post,  on  samples,  80,  213,  313, 

413 
Paste,  75 
Pasture,  920 
Paymaster,  wages,  75 
Pea  buildings,  6 

depreciation  reserve,  40 
Pea  machinery,  7 

depreciation  reserve,  41 
Pea  seed,  905 
Peas,  boxes  used,  303 

brokerage  and  commission,  312 

canned,  141 

cans  used,  302 

condiments  used,  305 

depreciation  expense,  307 


56 


Peas,  direct  labor,  301 

factory  expense,  309 

general  expense,  315 

sale  of,  163 

green,  300 

selling  expense,  313 

warehousing,  314 

sales,  320 

allowances,  316 

freight,  325 
Personal  and  real    estate    taxes    ac- 
crued, 74 

farm,  910 
Piece  work  checks,  75 
Pipe  threaders,  75 
Plowing,  900 
Pork,  205,  305,  405^ 
Portable  heaters,  75 
Postage,  92 
Potato  forks,  75 
Power  plant  expense,  71 
Produce,  grown,  920 

sold,  920 
Profit  and  loss,  165 

farm,  168 
Pulleys,  3,  5,  7,  9 

repairs  and  renewals,  72 
Purchase  discounts,  cash,  160 


Railroad  fare,  80 

help,  201,  301,  401 

track,  2 
Real  and  personal  taxes  accrued,  74 

farm,  910 
Rejected  goods,  90 
Relabelling  goods,  90 
Rent,  factory,  76 

farm,  906 
Rentals,  house  and  pasture,  farm,  920 

machines,  75 
Repairs  and  renewals,  farm,  911 

maintenance  and  renewals,  72 
Reserve  for  accounts  receivable,  166 

for  contingencies,  167 
Reserves  for  depreciation,  32  to  51, 

935 
Reserve  for  interest,  164 
Retail  sales,  green  produce,  163 
Return  sales,  canned  goods,  220,  320, 

420 
Rovalties  on  machines,  75,  209,  309, 
409 


S 


Safe,  20 

Salary,  factory  superintendent,  70 
farm  superintendent,  910 


Salary,  office  help,  92 

officers  and  managers,  91 

managers,  91 

salesmen,  80,  213,  313,  413 
Sales  allowances,  216,  316,  416 

barrels,  containers,  etc.,  163 

canned  goods,  220,  320,  420 

dents,  163 

farm  produce,  920 

freight,  225,  325,  425 

green  produce,  163 

hard  corn,  etc.,  163 

waste  products,  163 
Salt,  and  freight  thereon,  121 
Samples,  cost  of,  80,  213,  313,  413 

express  and  postage,  80 
Scales,  portable,  75 
Seed  corn,  904 

Seed,  factory  grown,  904,  905 
Seed,  miscellaneous,  908 

peas,  905 
Selling  expense,  80,  213,  313,  413 
Shooks,  including  freight,  110,  111, 
112 

labor  making,  110,  111,  112 
Shortage,  allowances,  220,  320,  420 
Shovels,  75 
Smithing    coal,    75 
Smithing  tools,  75 
Soap,  75 
Solder,  75 

Spices  and  seasoning,  205,  305,  405 
Spoils,  216,  316,  416 
Stamps,  rubber,  75 
Stationery   and  printing,   92 
Stencils,  75 
Stools,  factory,  75 
Storage  billed,   163 
Storage,     consigned    and    rejected 

goods,  90 
Stoves,  75 

Subscriptions,  trade  paper,  93 
Sugar  and  freight  thereon,  121 
Suits,  factory,  75 
Suits,  farm,  100 
Superintendent,  factory,  70 

bonus,  88 
Supplies,  factory,  75 

office,  92 
Surplus  account,  61 
Swells,  216,  316,  416 
Switch  track,  2 

maintenance,  72 


Tables,  factory,  75 

office,  20 
Taps  and  dies,  75 


57 


Taxes,   74 

excess  profits,  98 

farm,  910 

income,  97 

water,  75 
Teaming,  920 
Telephone  and  telegraph,  92 

farm,  910 
Tiling,    factory  land,   1 
Tiling,  farm  land,  925 
Time    checks,   75 
Timekeeper,   wages,   75 
Toilet  supplies,  75 
Tomato  buildings,  8 

buildings,  depreciation  reserve, 
43 

machinery,  9 
Tomatoes,  boxes  used,  403 

brokerage  and  commission,  412 

cans  used,  402 

condiments  used,  405 

direct  labor,  401 

factory  expense,  409 

general  expense,  415 

green,  400 

labels,  404 

machinery,    9 

ripe,  sale  of,  163 

sales,  420 
allowances,  416 
freight,  425 
Tomatoes,  selling  expense,  413 
Tools,  farm,  902 

repairs   and   renewals,   72 

small,  75 
Towels,  75 
Trade  papers,  93 
Traveling  expense,  80,  213,  313,  413 


Trays,  75 
Trucks,  75    ' 
Typewriter,  20 


U 


Uncollectible  accounts,  94 
Uniforms,  factory,  75 
Unloading  boxes,  110,  111,  112 

cans,   100,  101,   102 

coal,  71 


Veterinary   services   and   medicine, 
901 

W 

Wages,  engineer  and  fijreman,  71 
factory,  75 

foreman  during  pack,  201,  301, 
401 

except  durmg  pack,  75 
paymaster,   75 
timekeeper,  75 
watchman,  75 
Wagons,  902 
Warehousing  expense,  90,  214,  314, 

414 
Waste  cotton,  71 

products  sold,  163,  920 
Water  taxes,  75 
Wheelbarrows,  75 
Whetstones,  75 
Wire  and  steel,  baskets,  crates  and 

trays,  75 
Wrenches,  75 


58 


"™  -as?-  —v 

Return  to  desk  from  which  borrowed 
This  book  is  DUE  on  #i,„  1       j 
_________J^^last  da*  stamped  below. 

21Isn55FC 


A#W* 


*»; 


RECTD  LD 

MAY    41958 

M9RARY  USE 

FEB  1 4 1959 
W  U  I9KST 


LD21-100m.9,'48(B899sl6)476 


YC  V25U7 


■1 


, 


?MM 


M513334 


/V33 


